I still have not found a solution to this problem.
In another post, I found where they said that this happened in the SDK31 and they fixed it for the SDK32.
My assumption is that they stepped on source code
Hmmm, this is happening not only with the ImageManipulator methods. I tried to use a photo uri returned by the CameraRoll.getPhotos with the FileSystem expo module and the result is same.
But when I tried to use the same uri with the react native ImageEditor module it worked.
It seems like expo does not have permissions to the react native filesystem or something like that.
The bad news is that the ImageEditor does not have rotate method