This happens because the images broke when they were uploaded.
When installing WebEdit, make sure your FTP client is set to upload files as Binary files. The exact steps on how to set this up vary between FTP clients.
To set FileZilla to upload all files as binary, follow these instructions:
1. In the menu, click Edit, then Settings;
2. Under File Transfer Settings, select Ascii Binary;
3. Under Default transfer type, select Binary;
4. Click Ok.
Then you can safely reupload your files.

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