
Outlook Classic may fail to display embedded images in emails because of a bug introduced in version 2604 Build 19929.20164. Instead of showing an embedded image, Outlook can display a placeholder stating that the linked image cannot be displayed, or it can show nothing at all. The issue is especially disruptive when email signatures include images such as company logos. Microsoft provides steps to verify whether missing images come from the bug, but the workaround is to avoid setting images with Wrap Text with Top and Bottom. Images in the original message should display correctly after a fix, but replies or forwards to affected messages may permanently lack the image because it was not included.
"Microsoft admitted in a support article that, instead of an embedded image in an email, Outlook might show a placeholder with the error message: "The linked image cannot be displayed. The file may have been moved, renamed, or deleted. Verify that the link points to the correct file and location." Occasionally, it might show nothing at all. The problem is particularly irksome for affected users whose signatures include an image. Where there might be a company logo, there is, at best, an error indicating that something has gone wrong."
"Microsoft provided some steps to check whether missing images are being caused by the bug, although the process, which involves looking at the source, might be beyond users who are trying to send out a newsletter and wondering where the pictures have gone. Until a fix is issued, the workaround is to "avoid setting images with Wrap Text with Top and Bottom." Only Outlook Classic is affected, and a cynic might wonder if this, and other recent problems such as Quick Steps being grayed out, are symptomatic of Microsoft paying less attention to the venerable email client in favor of New Outlook."
"The good news is that, according to Microsoft, "images in the original message should be fine once a fix is released for this issue." However, the bad news is that "Replies or Forwards to these [affected] messages may permanently lack the image because it did not get included." Image handling is basic, and it's difficult to understand how it was missed during testing. We asked Microsoft what happened, but it has not responded. In the meantime, the workaround will suffice."
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