Minimum reproducible example:
[![Badge](local-blue.svg)](https://github.com)
# [![Badge](local-blue.svg)](https://github.com)
[![Badge](https://img.shields.io/badge/web-blue)](https://github.com)
Reading more result:
The link icon appears above (first case) or below (second case) the image. The image itself is not clickable (first case).
External images in external links work properly (third case).
Related to: Reading: Embedded Local Images to internal markdown links do not work properly