Office 2021 Classic not showing images in Signatures

Hello I work in IT and trying to find a solution to this problem that our outlook are not showing the images in the signatures. Our Outlook 2021 Version is 2608, Build 16.0.20326.20072. This occurs even when creating a completely new signature and inserting a new local PNG/JPG using Insert Picture. The image initially appears correctly when inserted, but after saving/reopening the signature it becomes a red X with the message "The linked image cannot be displayed. The file may have been moved, renamed, or deleted." Existing signatures have the same problem. Recreating the signature does not resolve it.

Here are some details we tried already.

BlockHTTPimages is not configured in either the normal Office registry location or the Policies location.

Uninstall Reinstalling Office didn't work

We are under AD profiles, with new profiles and even rebuilding current profiles didn't solve it. 

Attempted a full reset of windows 10/11 didn't work.

This appears to be an Outlook/Word signature-image regression rather than a corrupted signature or externally hosted image.

Per Microsoft status that this should've been resolved back in June but the issue still persisted.

https://support.microsoft.com/en-us/support/known-issues/images-are-not-displayed-in-emails-newsletters-or-signatures-in-classic-outlook?utm_source=chatgpt.com

I did try using ChatGPT to help with the issue. I will share the thread link here if you wish to look into of all troubleshoots that was attempted.

https://chatgpt.com/share/6aac0312-a08c-83ea-b1a8-2192b3677136

If anyone has any better knowledge of finding a solution as we have reported this issue to Microsoft via the help feature in outlook classic, but gotten no response since the last month since the issue started.