Error when applying patch
Yes. The patch needs to be placed inside the media_entity_image folder alongside the media_entity_image.info.yml file. And then you should be able to execute

patch -p0 &lt; media_entity_image_thumbnail_problem_2767501_13.patch


without any issue.

If you are using composer- I would highly encourage you to use the cweagans/composer-patches composer package. Details at https://groups.drupal.org/node/518975