Cannot add media image in panels and subsequent attempts show problems with WYSIWYG editor

Current setup has media uploads being allowed through CKeditor.
To reproduce the problem:

1. create an input filter that allows WYSIWYG integration.
2. Create a panel or edit a panel variant.
3. Add new custom content
4. Choose the format that allows media uploads
5. Attempt to add an image.
6. Click submit
7. Nothing should happen from this point on.
8. Verify an error has occured in the console:
   TypeError: defaults.src.replace is not a function (153 out of range 4)
9. Close the modal
10. Cancel the additionof custom content
11. Repeat steps 3 and 4.
12. Note another error has occured:
    TypeError: d is null (720 out of range 4)