This is because a setting in the Registry needs edited.
configure Outlook 2013/2016 to always embed all linked pictures
Please use this reg key we have made for this to fix:
Just click this link:
\\fs\software\office13_pictures_reg_key_export.reg
When the prompt box appears, put in your Windows credentials, like this:
for user name:
callfcu\YOUR_USER_NAME
for password:
YOUR_WINDOWS_PASSWORD (ctrl+alt+del password that you use to login to your PC every morning)
Once you successfully run the reg key file, you MUST reboot too. Start Button - Shut Down > Restart.
Let us know if you need help.