It's possible the edit icon in the Edit issue dialog is not opening the image editor to modify the image manually.
This will happen if you are working on Windows and you have set a default photo viewing app that can not 'edit' images, like "Photo's".
Change the default photo viewing app on your Windows to an application that can 'edit' images, like "Paint".
You can do this for every file format in your Windows settings > apps > Default apps > .jpg .png .rle