Installed local version of Twine 2.0, trying to display an image with Sugarcube 2 and doesn't work?

I have created an image called home.png and placed it into the same directory as my test story (documents/twine/stories/) and used the following syntax in a passage:

[img[home.png]]

This is the exact syntax used in the sugarcube 2 documentation but it refuses to display when i test the story in twine 2.

I get this: https://i.imgur.com/Sp6miCO.png
and inspecting the HTML shows everything should be fine: https://i.imgur.com/xtVYMKs.png

I have no idea what's wrong. Can anybody help?