Don't think you're in a Minority of 1 on this issue
I ran a Search and Many more people were Shouting out the same thing had happened to them
on all versions of MS Word
This link may get your Pics showing again
Has Clear screen shots 
All you have to do is find this Advanced Menu and check the Ticks are in the Right Boxes and the
"Show Picture place Holders" box is unticked!
If the Issue extended to all Pictures then the Problem Would lie in Internet Explorer Properties (similarly named tick box)
If No joy then Look further down that Menu
for any Tick box with HTML against it Untick these or tick as needed ..
And I wonder if there is a "Reset to Default settings" Button somewhere nearby? IE Has one. So its Logical Microsoft Has Provided one for Word?
Again Use this to restore "Normality"(and your pics to show?)
Not seen Dwight for a few days. He might be able to point out the location of this Button
