How to embed image or picture in jupyter notebook, either from a local machine or from a web resource?

You mustn’t use quotation marks around the name of the image files in markdown!

If you carefully read your error message, you will see the two %22 parts in the link. That is the html encoded quotation mark.

You have to change the line

![title]("img/picture.png")

to

![title](img/picture.png)

UPDATE

It is assumed, that you have the following file structure and that you run the jupyter notebook command in the directory where the file example.ipynb (<– contains the markdown for the image) is stored:

/
+-- example.ipynb
+-- img
    +-- picture.png