I do trust you are well. I was able to reproduce the same issue even with the rhomobile rhodes-system-api-samples "camera" test application. You alluded to the fact that you are using a MacOS during your testing. Meshack and I are both using Windows OS (both Windows 10 and Windows 7) produce the same outcome. Is there perhaps an issue when rendering images in Windows OS. From the log obtained from my side, the value of @item.pictureUri is "db/db-files/Image_01-26-2017_09.34.17_-000.jpg" and Rho::Application.expandDatabaseBlobFilePath(@item.pictureUri) produces "C:/Users/Rachidi/Documents/SableAssetsProjectsMobile/ConditionalAssessmentMobileApplication/rhosimulator/db/db-files/Image_01-26-2017_09.34.17_-000.jpg". However, I still can't see the picture on the rhosimulator. All I can see is a question mark instead of the expected picture. I look forward to reading from you soon.
Thank you so much for your feedback. I did implement your suggestion. However, I ended up with the same result. Basically, passing the relative path as source argument to img tag resulted in: <img src="db/db-files/Image_01-27-2017_06.27.07_-000.jpg"/>. Any other suggestions? I am using RhoStudio version 5.5.0 on a Windows 10 machine.