Someone helped me with the fix and I would like to share it here.

Check the image in the media library. It should be "shared".[![enter image description here][1]][1]


  [1]: https://i.sstatic.net/uZKzT.png

In my case, it wasn't. Don't know why. In quick info the template was

`/sitecore/templates/System/Media/Versioned/Jpeg `

Changing the template to

`/sitecore/templates/System/Media/Unversioned/Jpeg `

fixed it.