@flamingm0e
Yes - booted several times since then. I’ve tried converting the jpg files to png but that made no difference. I can however, go to /local/bart.jpg and see it with the browser.
SOLVED:
under configuration->customizations, I found "attribute to override: Other: and added
entity_picture: /local/picture.jpg
on this post Implement some custom icons I've created? and it worked!