Microsoft admits one of the most basic, useful Outlook features is broken

Microsoft has issued workaround for emails and newsletters not displaying images correctly or at all.

Outlook is one of Microsoft's premier apps, following Windows. However, it is no secret that there often are problems or bugs that arise in them. While software issues are not uncommon, it seems like Outlook and Windows often stumble into fairly major hurdles. For example, Microsoft recently admitted that some users were blocked from downloading Windows 11 updates.

And the is case with Outlook too wherein the company finally acknowledged after several months that Quick steps, a very useful feature, had been broken. While that's thankfully fixed now another major bug has now popped its head up once again affecting a useful and basic Outlook capability. Microsoft has confirmed that currently images are not being displayed correctly or at all in emails, newsletters and signatures. This could be quite annoying to users again considering the fact that it's a basic feature which people expect to work.

Microsoft writes: "When you include an image in an email or a newsletter or as part of a signature, you find that the image is not displayed. The image may include a red x and an error but not in all cases. This issue starts occurring with Version 2604 Build 19929.20164+. An error on the image may display with the following: “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.”"

In order to confirm you are having this problem Microsoft recommends checking the content ID (cid) of the image and see if it appears as XML elements. Essentially they tell Outlook to display an embedded image that is stored inside that mail and how to wrap the image alongside the text.

To do so:

1. Open the email in classic Outlook.
2. On the ribbon, select Move > Actions > Other Actions > View Source.
3. Search the email for cid and try and locate XML tags that should appear like code.

Microsoft says it is investigating the issue and for the time being as a workaround it has encouraged users to avoid setting images with Wrap Text with Top and Bottom.

Source

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Posted Friday 22 May 2026 at 9:03 am AEST (my time).

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