I inserted chmod in the following way to get permissions to work:
WA_DFP_SetupUploadStatusStruct("WA_UploadResult1");
if($_SERVER["REQUEST_METHOD"] == "POST"){
chmod(WA_DFP_UploadFiles("WA_UploadResult1", "itemImage", "2", "[ExistingFileName]_[Increment]", "PNG:9", $WA_UploadResult1_Params), 664);
}
Issue is resolved.