I want to see my image previewed in my file, rather than having to click on it to preview

[egauthier]

As I understand it, HEIC format is not supported by the underlying infrastructure of Obsidian (Chromium), so according to this post, it will most likely never be supported.

.HEIC Image Format Support

Like many others, I use an iPhone and the default image format is HEIC rather than jpg. I think it would be very valuable to have support for embedding HEIC files. As things currently sit, obsidian doesn’t even recognize the files when navigating to their location in the foder view, they don’t even show up.

as @stef.rausch mentions, you will have to convert before you transclude it.