If images inside your classic Outlook emails have suddenly stopped loading, a newly confirmed Microsoft bug is the cause. Microsoft acknowledged this issue on May 18, 2026, confirming that embedded images fail to render in emails, newsletters, and email signatures for affected builds.
What Is the Bug?
The bug causes images in classic Outlook to stop displaying entirely. Instead of seeing the image, users see a blank space, a broken placeholder, or a red X error icon. In many cases, Outlook also shows this 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.”
Microsoft confirmed that images set with Top and Bottom text wrapping trigger the rendering failure. The image data still exists inside the email source, but Outlook fails to render it on screen.
This is not the first time classic Outlook has caused problems for users recently. Microsoft also investigated a Classic Outlook Sync Error Triggers Server Connection Problems that affected users connecting Gmail and other mail accounts through the desktop client.
Which Versions Are Affected?
The bug started appearing with Version 2604 Build 19929.20164 and later builds. If your Outlook version is below this build number, this specific issue should not affect you.
How to Check If You Have This Bug
Microsoft provides a specific method to confirm whether this bug affects your emails. Follow these steps:
- Open the affected email in classic Outlook.
- On the ribbon, select Move > Actions > Other Actions > View Source.
- Search the email source for cid.
- Look for XML tags matching this pattern:
<v:imagedata src="cid:[email protected]" o:title="" />
<w:wrap type="topAndBottom"/>If you find those tags and the image is not rendering, the bug is confirmed on your system.
What Happens to Replies and Forwarded Emails?
This is the more serious part of the issue. While original emails should display correctly once Microsoft releases a fix, replies and forwarded copies of affected messages may permanently lose those images. Because the image never properly attaches during the forward or reply process, no future fix can restore it in those copied messages.
Users who rely heavily on image-rich newsletters or branded email signatures face the most disruption here.
This situation differs from common problems like Outlook not receiving emails on laptop and phone, where emails arrive but sync or connectivity problems prevent them from appearing. In this bug, the emails arrive but the embedded content fails to render.
Workaround: Avoid Top and Bottom Image Wrapping
Microsoft’s official workaround is straightforward: avoid setting images with Wrap Text: Top and Bottom in your emails or signatures until a permanent fix arrives.
If you use signature images or design email newsletters inside classic Outlook, switch the image wrap setting to any other option, such as In Line with Text or Square. This prevents the rendering failure from occurring.
For users managing multiple Outlook issues at the same time, also check whether you have an SMTP authentication error in Outlook affecting outgoing mail, or a 550 5.7.520 Outlook Error blocking message delivery. If your account access is also impacted, the guide on Microsoft Account Locked Out of Outlook covers account recovery steps as well.
Microsoft’s Current Status
As of May 18, 2026, Microsoft marked this issue as Investigating on its official support page. The Outlook team is actively working on a fix, and Microsoft will update the support page when additional information becomes available. No timeline for a permanent resolution exists yet.
Related Guides: Outlook Error Fixes
