I am attempting to return a json encoded array to JS from PHP and i\'ve done so many times before but now i\'m getting a weird error. I am successfully getting the data and it\'
So I worked the code back and think this solution might work for you.
$.ajax({
  async: "false",
  type: 'POST',
  data: {
    action: 'var1',
    albumName: 'var2'
  },
  dataType: 'json',
  url: '/controller/function',
  success: function(data) {
    $.each(data, function(index, element) {
      console.log(index);
      console.log(element.fullURL);
      console.log(element);
    });
  }
});
I can't test the ajax event however I have tested out the json you provided with the each loop and it seams to work. LINK TO FIDDLE
var data = [{
    "caption": "",
        "fullURL": "https://lh6.googleusercontent.com/--ZKG_L-SA9c/UgqECNqP4II/AAAAAAAAA2I/i5nCa3CvKqM/s912/2010raptor_firstdrive002_opt.jpg",
        "location": "",
        "program_instance_id": "a0Ji0000001pPO6EAM",
        "tags": "",
        "thumbURL": "https://lh6.googleusercontent.com/--ZKG_L-SA9c/UgqECNqP4II/AAAAAAAAA2I/i5nCa3CvKqM/s128-c/2010raptor_firstdrive002_opt.jpg"
}, {
    "caption": "",
        "fullURL": "https://lh3.googleusercontent.com/-kyUg7_Rul90/UgqEDIu4DhI/AAAAAAAAA2Q/WF0BAEI7smo/s912/220px-Microchip_PIC24HJ32GP202.jpg",
        "location": "",
        "program_instance_id": "a0Ji0000001pPO6EAM",
        "tags": "",
        "thumbURL": "https://lh3.googleusercontent.com/-kyUg7_Rul90/UgqEDIu4DhI/AAAAAAAAA2Q/WF0BAEI7smo/s128-c/220px-Microchip_PIC24HJ32GP202.jpg"
}];
$.each(data, function (index, element) {
    console.log(index);
    console.log(element.fullURL);
});
also good news is that your json is 100% valid so what is being passed back seams correct. Hope this helps