I'm using an HTML responsive email template for New customer registration email notifications (NewCustomer.Notification).

In the body of the email I'm using a base 64 encoded image as the logo (anchor link) to avoid Gmail from hiding the images (explicitly prompts recipients to click the "always display the images")

Once the template editor page is switched from source code view to rich editor view, the base 64 images are not rendering the image instead displays the alt text.

In visual studio, the same code renders the image without any issue.

What might be causing the issue?