It looks like BitmapDecoder used in ImageProcessChain does not rotate images with the included exif orientation tags on a photo. Not including any preprocessing chains for photo uploads resolves this issue.
A possible solution -> applying Matrix#postRotate() with a newly created bitmap during bitmap decoding (https://github.com/cloudinary/cloudinary_android/blob/master/lib/src/main/java/com/cloudinary/android/preprocess/BitmapDecoder.java#L82).
Device info:
Android 9
Pixel 2 emulator
SDK info:
1.26.0