How to enable thumbnails in RSS dashboard widget

It’s a method for completely different thing.

RSS 2.0, Atom 1.0, and feeds with iTunes RSS tags are allowed to have a “feed logo”, which is a single image to represent the feed. This method returns the notated URL for that image/logo file. get_image_url()

And it complains about undefined because it is method of feed object and you are iterating through feed item objects.

Overall it depends on how your feed works with images. If they are simply included in content – mine them from there (with regex or something simpler if not much text). If images are included in media enclosure try get_enclosures() method.