The problem is, when trying to insert an imgae, as in the draft post /content/posts/GS500.md the generated HTML sets the image source as
img src="[/images/blog/suzanne.png], when in reality, the image is at samscorner/images/blog/suzanne.png.
How do I make it so that it sets the correct image location based on my baseurl?
You are serving your site from a subdirectory, which is fine, but this means that the host-relative URL to your image is /samscorner/images/blog/suzanne.png.
You could change your markdown accordingly, but if you change your hosting setup you would have to change all the markdown instances as well… this isn’t a great idea.
Instead, enable Hugo’s embedded link and image render hooks to properly resolve link and image destinations: