The update does break the Media browser for Images and Movies. Even with the iPhotos.app still on the system.
It looks like what actually happens is that the update duplicates your images from the iPhoto.app library into a new Photos.app Library. The new library is called Photos Library.photolibrary and the old iPhoto Library.photolibrary's extension is changed to .migratedphotolibrary i.e iPhoto Library.migratedphotolibrary
I Suspect that Hype is looking for the Photos Library.photolibrary.
I guess the Devs at Tumult would need to add a check for this change in an update.
But in the mean time if you really need the Media Library to work, you can change the extension back to .photolibrary