(New Notebook UI) Local images cannot be inserted in Jupyter notebook

[NightMachinery]

Issue Type: Bug

Inserting local pictures in the markdown cells in notebooks does not render them.

The previous issue for old notebook UI: microsoft/vscode-jupyter#2988

VS Code version: Code - Insiders 1.54.0-insider (a699ffa, 2021-02-15T05:15:52.209Z)
OS version: Darwin x64 19.0.0

System Info

Item	Value
CPUs	Intel(R) Core(TM) i5-6267U CPU @ 2.90GHz (4 x 2900)
GPU Status	2d_canvas: enabled gpu_compositing: enabled metal: disabled_off multiple_raster_threads: enabled_on oop_rasterization: enabled opengl: enabled_on protected_video_decode: unavailable_off rasterization: enabled skia_renderer: disabled_off_ok video_decode: enabled webgl: enabled webgl2: enabled
Load (avg)	11, 7, 7
Memory (System)	8.00GB (0.02GB free)
Process Argv	--crash-reporter-id 957573b0-8efb-439e-8824-88e70a27447a
Screen Reader	no
VM	0%

Extensions (60)

Extension	Author (truncated)	Version
better-comments	aar	2.1.0
aw-watcher-vscode	act	0.5.0
interactive-scala	als	1.3.0
docs-view	bie	0.0.9
better-toml	bun	0.3.2
gitignore	cod	0.6.0
bracket-pair-colorizer-2	Coe	0.2.0
scala	dal	0.0.5
gitlens	eam	11.2.1
vsc-material-theme	Equ	33.0.0
vsc-material-theme-icons	equ	1.2.0
crystal-lang	fau	0.4.0
go	gol	0.22.1
Ionide-fsharp	Ion	5.3.2
vscode-peacock	joh	3.9.1
language-julia	jul	1.1.21
crystal-ide	kof	0.0.4
vscode-markdown-notes	kor	0.0.22
nim	kos	0.6.6
dotty	lam	0.1.16
Lisp	mat	0.1.11
git-graph	mhu	1.28.0
vscode-docker	ms-	1.10.0
csharp	ms-	1.23.9
python	ms-	2021.1.502429796
vscode-pylance	ms-	2021.2.2
jupyter	ms-	2020.12.414227025
remote-containers	ms-	0.160.0
remote-ssh	ms-	0.64.0
remote-ssh-edit	ms-	0.64.0
remote-wsl	ms-	0.54.0
vscode-remote-extensionpack	ms-	0.20.0
cpptools	ms-	1.2.1
powershell	ms-	2020.6.0
vscode-js-profile-flame	ms-	0.0.14
debugger-for-chrome	msj	4.12.12
vscode-paste-image	mus	1.0.4
gradle-language	nac	0.2.3
polacode	pnp	0.3.4
java	red	0.75.0
vscode-yaml	red	0.15.0
datetime	rid	2.0.1
rust	rus	0.7.8
multi-command	ryu	1.5.0
scala	sca	0.5.1
code-settings-sync	Sha	3.4.3
vscode-autohide	sir	1.0.7
markdown-links	tch	0.8.0
ayu	tea	0.20.1
vscode-lldb	vad	1.6.1
vscodeintellicode	Vis	1.2.11
vscode-java-debug	vsc	0.31.0
vscode-java-dependency	vsc	0.18.0
vscode-java-pack	vsc	0.12.1
vscode-java-test	vsc	0.28.0
vscode-maven	vsc	0.27.1
org-mode	vsc	1.0.0
vim	vsc	1.18.9
debug	web	0.25.0
markdown-all-in-one	yzh	3.4.0

(5 theme extensions excluded)

A/B Experiments

vsliv695:30137379
vsins829:30139715
vsliv368:30146709
vsreu685:30147344
python383:30185418
pythonvspyt617cf:30253240
vspor879:30202332
vspor708:30202333
vspor363:30204092
vswsl492cf:30256198
vstry244:30244315
pythonvsdeb440:30224570
pythonvsded773:30223139
pythonvspyt875:30251590
core-portspanel:30257802
coreuntitledfile:30249963
openwslfolder:30257850

[ICULikeMac]

Was there ever a fix to this? I cannot get png's showing in pycharm or visual code? Thanks