I tried adding an image in twin with <img src="url"> where "url" was, of course, a real image location. But it didn't work, despite what all the guides said. It was showing up as a broken link. When I opened the exported story in a text editor I saw that Twine had automatically added quotes of its own so that <img src="url"> was in the file code as <img src=""url"". My workaround was to ditch the quotes in the editor, like <img src=url>, and it worked. Twine added the quotes for me like <img src="url">.
I'm pretty that's a bug, but hey ... it works.
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That's strange. I use images in my Harlowe game and that's not happening, so I dunno. :-/
Harlowe, Chrome, Twine 2.0.4 ...