Is it bizarre that a professor asks every student for a 3 inch by 5 inch photograph?
I would be interested to know why the professor wants these. I can suggest a completely innocent reason, even a reasonable one. But, I realize there are other possible interpretations. I wonder if you are brave enough to go and ask why. 

But the innocent reason might be that the prof just needs a crutch to try to learn to match the names and faces of students to make interactions easier. A typical student only has a few professors so it is easy to remember names. But a professor might have tens or even hundreds of students. Some will try to remember the names and a picture can help. 

To extend this, a professor might be thinking long term about students and might actually keep a file on each student, with notes about their accomplishments so that if the student asks for a LoR in the future there is something on record other than grades on which to base it. A picture in such a file could be a helpful reminder of who the student is, making such things easier. 

I used to keep an index card for each of my students. No picture, though. But it served as a place to keep notes about that individual's needs and what I might need to do to serve them well. It also helped me keep track of who was asking and answering questions in class and who was more passive. Then, I could try to bring the passive ones more into the discussions. 

Some professors, who teach large classes, assign specific seats to students and have a sheet of the names of the students, with pictures, in the same arrangement as the seats. Then if a hand goes up, the prof can address the student by name. 

There are lots of possible positive reasons along with the ones you might be worried about. But you might want to ask. You could also, possibly, ask students who previously took classes from the prof. Or, you could go to the department office and express discomfort. You might learn the actual reason, and it might make the practice seem OK, or not. 

The 2 points is immaterial (unless the max is 5). It is just a nudge. A bribe, perhaps.