Solid Edge Insert Image is incorrectly displayed as grey box or rectangle

User is attempting to insert an image into Solid Edge 3D Publishing but after inserting the image, it is unexpectedly displayed as a grey rectangle or box even though the image displays correctly in other applications:

Solid Edge 3D Publishing does not auto determine an image type based on the image file content but instead bases the image type based on the image file extension name.

In this scenario, the user has an image that is marked and named as a PNG or .png file type and the file displays without issue in other applications e.g. Windows Explorer:

However, the image is not actually a PNG image format but is in fact a JPEG image format. Just because you give an image file the file extension name of .png does not automatically make that image file a valid .png image file.

If we rename the image file on disk from the .png file extension to the .jpeg file extension, the image still displays without issue in other applications e.g. Windows Explorer:

Now the correctly identified and named image file will insert into Solid Edge 3D Publishing without any issue: