Allow embed of Local images using 

[ryanjamurphy]

Just to keep track of why this request hasn’t happened yet, see the explanation offered in this thread:

Does ANY HTML work in Obsidian w/local files?

Sorry about the frustration. This is an Electron issue, and actually @Licat has been working with Electron’s developers to resolve the problem since early August! Progress is steady, so hopefully we’ll be able to link to local files soon.