As of 16 January 2025, this issue is still unresolved. I referred it to my campus Canvas team on 4 Jan. After a little back and forth, the most recent response I have from them on 10 Jan. was, "After further investigation, Instructure has found that this issue occurs when using Stimuli with Rich Content (images, videos, documents, etc.) that are in the same section as banked quiz questions, which seems to be the case for your reported quiz. Their engineers are currently looking into this and working on a fix. We will update you when we hear more from the vendor's engineers."
What the part in the middle means is that this is not an issue for all Stimulus items. It only occurs when one or more of the "attached" questions to that Stimulus item are pulled in from item banks. I have verified that this is the case. If I put the same image into a second Stimulus item in the same quiz and attach a question that is not pulled from an item bank, the image displays correctly.
At this point, I have used two work-arounds.
(1) I placed the image file on a cloud server (Google Drive) and set the permissions to be accessible to anyone with the link and then put the link to that file in the Stimulus item as part of a note that says essentially, "There is supposed to be an image here. If it is not visible, you should be able to see it at this link."
(2) I created a fake question (worth 0 points) just before the Stimulus item which has the image I want the students to see and then put a note in the Stimulus item that says something like "See image above." But this has disadvantages: it doesn't keep the image onscreen as the student scrolls through the attached questions, and you can't have the quiz set to "Shuffle questions" because then the fake question won't always be just before the Stimulus item and associated "attached" questions.