Sorry about the delayed response - for some reason I didn't get the new post notification for this thread.
Yes, all Vertex-based themes are fully compatible with the latest version of WP. The pre-responsive (Released prior to Corporate Response) use an older javascript library and require more complicated patching, but Big Picture is new enough that applying the
Vertex Upgrade Patch (If you feel the need to) will be fast and easy.
As for the issues with the Image and Content Fader - you most likely updated the plugin at the same time as the WP update, and the latest version of the plugin adds a few new options that will not be updates until you edit the widget and save it. Once the widget has been re-saved (you don't have to change any settings, just save again to add the new options to the database), everything should re-appear and function normally again.