You had just bound the TO field to the recordset value, but you need to click the TO button and open the sub-interface to bind it to "Recordset Loop".
I've made that update and uploaded the file so you can see.
Missing images may depend on the email client you are using. If you are using outlook it will block the images by default and then you can click "allow blocked content" to show them. I feel like that might be the issue.
I'd have to see a copy of the sent email to be sure. Feel free to forward it to me if you want me to take a look.