Confirmed Problem: Image Upload Problem Still Persists on SteemIt
Currently, all image upload will fail with 500:
Image upload : Error: 500:

I've checked with @ety001 and he is looking into it.
At the meantime, for a workaround, you can use third party image library like this and insert the image URL to the post.
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Hey @justyy, thanks for the quick heads-up about the image upload issue! It's awesome how you're always on top of things, ensuring a smooth experience for everyone on Steem. That 500 error is definitely a buzzkill, but I appreciate you not only flagging it but also providing a temporary workaround with the third-party image library.
And as always, thanks for the continuous development on steemyy.com! All those swapping tools are invaluable for navigating the crypto space. I am sure your steem2sui, steem2sol, and steem2eth will be of tremendous help for everyone! Keep up the fantastic work! I'm sure the Steem community will be eager to hear when the image upload issue is resolved. In the meantime, let's use those alternative image solutions and keep creating awesome content!