Apparently the issue occurs either with Apache or IIS on Windows only. You're the 4th person to reference this issue (the other 3 used IIS). I will short it out in 2.10.2 or 2.10.3, but it's not my utmost priority as 99,999% of Joomla hosting is done on Linux servers with cPanel or Plesk on them.
In the meantime, as a workaround, use the "browse server" option which opens up the K2 Media Manager. Upload attachments through that and then simply select them for usage.
Fotis / JoomlaWorks Support Team
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Please search the forum before posting a new topic :)