Can't save images: Missing bundle for entity type crop

I've updated Drupal using drush. It was version 8.0.x (missed a couple of updates) and it's 8.1.2 now.
I was using focal point plugin for images. There was an information that Crop API plugin is now required.

I've installed it with all the dependencies:
- Media entity crop
- Media entity

Now when I try to add any content with image I am getting:

Drupal\Core\Entity\EntityStorageException: Missing bundle for entity type crop in Drupal\Core\Entity\Sql\SqlContentEntityStorage->save() (line 756 of /core/lib/Drupal/Core/Entity/Sql/SqlContentEntityStorage.php).

Can't also add new image style.
Images that use focal point as preview image doesn't display after upload. Clicking on the image link open it in popup window. I think it tries to crop it and fails.

It's always the same error.

I've tested both local environment and production server. The identical issue on both.

Would really appreciate any help. I am struggling with it the second day and no progress so far.