The guide at Directory structure is not that helpful, as there are three different paths mentioned, as suggestions for images..
/assets
/resources
/static
please advise where images that are used for content, should be placed.
If your theme provides its own link or image render hooks, and if those render hooks do not properly resolve the link destinations, set useEmbedded to always instead of fallback.
@jmooring - Thank you, I will test your suggestion.