Next 11.1.0 Image component 404s images from Cloudinary during local development

[JamesSingleton]

What version of Next.js are you using?

11.1.0

What version of Node.js are you using?

v14.17.3

What browser are you using?

Chrome

What operating system are you using?

Windows 10

How are you deploying your application?

Vercel

Describe the Bug

After updating to Next.js 11.1.0, my images now 404 locally with "url" parameter is valid but upstream response is invalid as the response. You can pull down https://github.com/JamesSingleton/poco-verde and run yarn dev and then go to localhost:3000

Expected Behavior

Images should not 404 locally

To Reproduce

1. Clone down https://github.com/JamesSingleton/poco-verde
2. Run yarn to install dependencies
3. Run yarn dev
4. Open localhost:3000
5. Scroll down to Welcome to Poco Verde Pools and Landscaping

[JamesSingleton]

Looks like someone also started a discussion around this #28000

[jonahallibone]

I opened an issue about this yesterday here: #27973 seems like it's going to be fixed in an upcoming canary

[JamesSingleton]

Ah ok I was asked to open an issue by @leerob so I went ahead and opened it. But I will close it.

[balazsorban44]

This issue has been automatically locked due to no recent activity. If you are running into a similar issue, please create a new issue with the steps to reproduce. Thank you.