Editor doesn't render images included in the project

[ravindUwU]

Description of Bug

Images included in the project aren't rendered correctly in the editor, shows a black & white checkerboard pattern instead.

Steps to Reproduce

1. Visit https://stackblitz.com/edit/ravinduwu-gh-stackblitz-3176?file=index.html and wait for the server to start up and the HTML preview to load.
2. Click on owo.smol.png or owo.smol.jpg in files section of the sidebar.

Expected Behavior

The image is shown in the editor, as it does in VSCode.

Screenshots