Football Manager 2017 (and Football Manager Touch 2017) has made some changes to how the manager picture works, with one of the new features being the ability to turn a photo into a facegen image used by the regens in the game, unfortunately it seems the adding of this feature removed the ability for you to assign a image to your manager via a config file like you do with players, SI for some reason also removed the option to add a manager picture from the preferences menu.
Whilst pre-patch 17.3.1 it was possible to use some coding from FM16 to get the picture back this workaround was disabled in that patch, however thanks to some work from Cyrius50 at www.manager-online.fr it is now possible to add a Manager Picture when adding your Manager to the game, however at the moment it isn't possible to apply the picture to existing profiles nor to change the image, and it may be disabled again if the game gets any more patches.
Whilst pre-patch 17.3.1 it was possible to use some coding from FM16 to get the picture back this workaround was disabled in that patch, however thanks to some work from Cyrius50 at www.manager-online.fr it is now possible to add a Manager Picture when adding your Manager to the game, however at the moment it isn't possible to apply the picture to existing profiles nor to change the image, and it may be disabled again if the game gets any more patches.