JSFiddle - React, Tailwind, and code Playground

HTML

<h2>not working (img tag):</h2>

<img src="data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAABgAAAAYCAAAAADFHGIkAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAEnRFWHRTb2Z0d2FyZQBCYXJjb2RlNEryjnYuAAAAgklEQVR42nVRixKAMAjy/3+a2hBwdVtdD1RELFxOXS6+9v1+F/+ICFs5jpGqsQWSosy3MQbVGSEDC7q4FaQrRiJDepJ1iG2sATggaqkeCc3VqicDDu6omgk1VdmS4W3Uq4sr4hE8llSYKe7GXsTxTPdZTdlyLQA4xrKQOit+Ryv7nwfFATbY5mERHQAAAABJRU5ErkJg" />
<img src="data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAFMAAABTCAAAAADG2WTcAAAACXBIWXMAACZzAAAmcwHzbHUKAAAAEnRFWHRTb2Z0d2FyZQBCYXJjb2RlNEryjnYuAAABBklEQVR42u2Z2w7DIAhA+f+fdkv20CIHsEsfJOhLM1aOCxcBJ+P9JYWY8l30GEsPrXaY6uPN0ETRiN8CnWLMSzd6G82n5IepQHoH5SMUzj9DijKNwW6CwMggP0wbn1PIkat0cLo+KsREBa6P85auPfdmejUOT30TYGzPzkwvN43cYz7I992YJhzZUrMk81FbJhVGq5d0am7PUIlJaTiC71bs2ZLptWIm0Rd7hipMLIV4oGV7HWY20ngeW7lnKMS8dLGeYjXI7NmSGbWwQVdi36/LxOTDo9AOMdG9zb7MeDrDXSXLzc5M7/YkGgrJWxWZdKwPOngkaZYO051x/1nVmJ3/63l7fQBosha9l4JpVwAAAABJRU5ErkJg" />

<h2>not working (div with background-image):</h2>

<div class="pic"></div>

<h2>working:</h2>

<img src="data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAFMAAABTCAAAAADG2WTcAAAACXBIWXMAACZzAAAmcwHzbHUKAAAAEnRFWHRTb2Z0d2FyZQBCYXJjb2RlNEryjnYuAAABAklEQVR42u2ZwQ7AIAhD+f+f3nbwMGwBl3hYg1xM5ngmUBE3u/abCTHtMTZcS4N3O0z3dNiYg+eeickZ02LMVzRcPJ0DD77zPsw5CQv6BGaYIwkmxo6+/V7S2CKHGShvYaNDmngN+T0TfGk9Y/E0DL4YkxVsWCQsSGGOOjPhHaNVfM5W2YMpMCFu2A3QQyHb722ZkQAT+dLzVJEJvqz4hYqc1H2Y4XHgU0WPCmzFxJhMjrTO00K3uDd7MXm8SSdKc1fej/7LLGTK+8yvPW0jZrGZ15sQXWbUGCTXOXIoiDGLLx3RUN1lOjOzCp5MkzZUmlkIM9JnGs9ezF2mxuz8r2e33b2PHKlEJ4PKAAAAAElFTkSuQmCC" />

CSS

div.pic {
    width: 100px;
    height: 100px;
    background-image: url('data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAABgAAAAYCAAAAADFHGIkAAAACXBIWXMAAAsTAAALEwEAmpwYAAAAEnRFWHRTb2Z0d2FyZQBCYXJjb2RlNEryjnYuAAAAgklEQVR42nVRixKAMAjy/3+a2hBwdVtdD1RELFxOXS6+9v1+F/+ICFs5jpGqsQWSosy3MQbVGSEDC7q4FaQrRiJDepJ1iG2sATggaqkeCc3VqicDDu6omgk1VdmS4W3Uq4sr4hE8llSYKe7GXsTxTPdZTdlyLQA4xrKQOit+Ryv7nwfFATbY5mERHQAAAABJRU5ErkJg');
}