Steps to reproduce
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In Settings → Files and Links, enable:
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New link format → Shortest path when possible
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Automatically update internal links
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Use [[Wikilinks]]
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Add an image to your vault.
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Link that image in a note, and also place it in a Canvas.
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Move the image using Obsidian’s Navigation pane and confirm both references still work.
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Then move the image by changing its location in the file explorer instead.
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Reopen the note and the Canvas.
Did you follow the troubleshooting guide? [Y]
Expected result
I expect Canvas image references to remain valid after moving the image, similar to how my note links remain valid with New link format = Shortest path when possible.
Because this setting uses just the file name when possible, the link does not need to be rewritten when the file is moved elsewhere in the vault, as long as there are no duplicate names.
Actual result
If I move the image using Obsidian’s Navigation pane, it works correctly.
But if I change the image location through the file explorer, the Canvas reference does not update and the image breaks.
More generally, Obsidian does not technically update links when a file is moved through the file explorer instead of inside Obsidian, regardless of whether the target file is referenced from a .md note or a .canvas file.
In my notes, this is usually not a problem because I use Shortest path when possible, so image links are often just filename-based and continue to work after the move.
In Canvas, however, the image appears to be stored as a path reference, so moving it through the file explorer causes the Canvas image to break.
Environment
SYSTEM INFO:
Obsidian version: 1.12.7
Installer version: 1.8.10
Operating system: Windows 10 Pro 10.0.19045
Login status: logged in
Language: en
Catalyst license: none
Insider build toggle: off
Live preview: on
Base theme: dark
Community theme: none
Snippets enabled: 1
Restricted mode: on
RECOMMENDATIONS:
Custom theme and snippets: for cosmetic issues, please first try updating your theme and disabling your snippets. If still not fixed, please try to make the issue happen in the Sandbox Vault or disable community theme and snippets.
Additional information
This may be expected if files moved through the file explorer are outside Obsidian’s link-update system. However, the behavior still feels inconsistent because note links often continue working under Shortest path when possible, while Canvas image references break because they appear to rely on stored paths.
I am trying to determine whether this is expected Canvas behavior or a bug in how Canvas stores image references.

