ckfinder inserted image not opening in outlook

Question

I am using ckeditor and ckfinder to create text that i send out using Lyris List Manager. If i insert an image using ckeditor and ckfinder, it inserts it fine in the WYSIWYG editor but when the list manager sends out the text, it does not seem to render?

However if i look at the source of the file in the outlook, and paste that to the web browser it does download the file! The fact that it does download it means that it is accessible.

Not sure what the issue is? Here is what the src looks like URL

Attached is what outlook looks like Picture of outlook

These are the config changes

    public ConnectorBuilder ConfigureConnector()
    {
        var connectorBuilder = new ConnectorBuilder();
        connectorBuilder
            .SetRequestConfiguration(
                (request, config) =>
                {

                    //config.AddProxyBackend("local", new LocalStorage(@"MyFiles"));
                    var userName = request.Principal?.Identity?.Name;
                    var userFilePath = request.Principal?.UserSaveFilePath();

                    if (userName != null)
                    {      
                        var folderName = userName;
                        var mediaPath = ConfigurationManager.AppSettings["MediaPath"];
                        var thumbsMediaPath = ConfigurationManager.AppSettings["ThumbsMediaPath"];
                        config.AddProxyBackend("local", new LocalStorage(mediaPath));
                        config.AddProxyBackend("thumbs", new LocalStorage(thumbsMediaPath));
                        config.AddResourceType("private", resourceBuilder => resourceBuilder.SetBackend("local", userFilePath));
                        config.SetThumbnailSizes(new SizeAndQuality(100, 100, new ImageQuality(80)));
                        config.SetThumbnailBackend("thumbs", "thumbs");                                 

                        config.AddAclRule(new AclRule(
               new StringMatcher("*"), new StringMatcher("/"), new StringMatcher("*"),
               new Dictionary<Permission, PermissionType>
               {
                     { Permission.FolderView, PermissionType.Allow },
                     { Permission.FolderCreate, PermissionType.Allow },
                     { Permission.FolderRename, PermissionType.Allow },
                     { Permission.FolderDelete, PermissionType.Allow },

                     { Permission.FileView, PermissionType.Allow },
                     { Permission.FileCreate, PermissionType.Allow },
                     { Permission.FileRename, PermissionType.Allow },
                     { Permission.FileDelete, PermissionType.Allow },


                     { Permission.ImageResize, PermissionType.Allow },
                     { Permission.ImageResizeCustom, PermissionType.Allow }
               }));
                    }
                })