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Accepted Answer
There has not been any recent change to the create API endpoint that could cause this issue. From the output provided the actual error coming from DigitalOcean is
422 You specified an invalid image for Droplet creation.
This means that the DigitalOcean disk image specified could not be used. This value can either be an image slug like ubuntu-14-04-x64 for our stock Ubuntu 14.04 image or docker for our Docker One-Click image or it can be an image ID number which can identify a snapshot image on your account. There are a few reasons this error could happen.
1.) The image specified does not exist.
2.) The image specified does not exist in the data center you have specified (you can move an image to more regions from the Images section of the control panel)
3.) The image specified does not belong to the account you are using (an image can be transferred to a new account from the Images section of the control panel if needed).