Using the “insert picture” function in Microsoft Office apps (Word, Powerpoint) returns following error.
“An error occurred while importing this file. https://xxxxx-mysharepoint.com/personal/auser_domain_com/Documents/photo.jpg”
This is caused by an advanced setting in the internet options/ Security being set as 'Do not save encrypted page to disk.'
This prevents a local cached file of the image being download before the import occurs.
Go to Internet Options> Advanced settings> Security and untick the option:
'Do not save encrypted page to disk.'
Alternatively if you are in a AD managed environment you can find the setting via Group Policy under:-
User Configuration\Preferences\Control Panel Settings\Internet Settings\Advanced Tab\Security\
Once this setting is unticked inserting photos works without and issue.
Please be conscious of any other security impact this setting has on your environment.