Pictures INSERTED into Outlook 365 email not displaying! cannot INSERT a picture into Outlook 365

I have Outlook installed as part of my MS 365 subscription Version 1710 (Build 8625.2127) on a new ASUS Q524UQ i7 laptop running Windows 10. When I insert an image as jpg from my PC into the body of an email the recipient only sees something like
[cid:image001.jpg@01D366E0.6F20BBC0] and the image is included as an attachment.

I have tested this as a "new email" or a "reply email" and the result is the same. If I do the exact same thing on another computer running Outlook 2010 the image is inserted as expected. I am configured as HTML email on both. All email option settings are the same for the two computers. Please advise. The same outcome is experienced when inserting and image from web via BING. Outlook 365 fails to insert the image yet Outlook 2010 delivers.

Pictures INSERTED into Outlook 365 email not displaying! Why cannot INSERT a picture into Outlook 365 email?

Answer came from Diane Poremsky MS Forms MVP (slipstick.com) replied on November 26, 2017

Does it send correctly if you run Outlook in safe mode then create and send the message? To open Outlook in Safe mode: press Windows key + R to open the Run command and type outlook.exe /safe and press Enter. (Outlook needs to be closed first.)

Hi Diane, I got Outlook to open in Safe Mode via the run command! And yes my test email was successful in delivering the images as inserts NOT as attachments.

If it worked in safe mode, an addin is the likely cause. (it was not)
Glad it’s not the winmail.dat problem. :)

Try this : when you type the gmail address in the To field, delete the autocomplete entry and type the address in completely. Embed the images and send. Does that work as expected?

Now it works! I turn AutoComplete Off in the Outlook 365 Mail Options, and type in the 3 test email addresses (Google, @Centurylink.net, and @buyandsellcville.com and the images are indeed inserted as expected. I even did a Forward from the received mail (in 365) and they all show up in the body of the email on my other PC (in Chrome and in Outlook 2010)!

Видео Pictures INSERTED into Outlook 365 email not displaying! cannot INSERT a picture into Outlook 365 канала David Roy Griffin