I've been trying to give some new playlists covers for the past few days with no luck. I tried everything, and I've looked around for answers on the community as well. I've done everything recommended, like reinstalling spotify (done twice, with no luck) updating spotify, used multiple images with different sizes, none of which passed the 4MB limit. I've even used some pictures of myself and some of my artwork so I know copyright isn't the problem.
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I know it sounds simple, but it's often overlooked. Could you try restarting your device? Sorry if this may sound a bit repetitive but if that doesn't help, try a quick clean reinstall of the app by following these steps. You can also look at this thread to learn more about playlists costum covers.
Have you tried it with a different network connection or by creating another user account and installing Spotify there?
If you're still having trouble, could you let me know the exact version of Spotify and the exact version of the operating system you're running?
I'll see what I can suggest next!