Currently, images that are added to an announcement via the Embed image function in the Rich Content Editor or from the Content Uploader >> Images tab do not appear in the notifications.
Screenshot of announcement
Screenshot of notification of the same announcement, viewed from email. Images are missing.
As you can see in the notification, the message the instructor writes becomes somewhat confusing, as there isn't even a placeholder to denote the presence of an image that they are referring to. I seem to recall that there at least used to be an image tag, but this is no longer available.
If the image is not going to be embedded, at least put a placeholder or a link to the image.