v4.3.3
Marked down base64 encoded images not getting rendered. Instead shows the image caption. This approach works perfectly on v3 emulator, web chat, skype, slack and ms teams.

We reviewed the code and after running some tests using WebChat alone on HTML, Azure Portal and React Web Apps, we came to the conclusion that the issue is not located on Emulator itself, but on the ReactWebChat library of BotFramework-WebChat.
We created an issue for this on the corresponding repository ISSUE#1896
We fixed this issue on #2067
Great! Thanks @denscollo.
So we just need to bump the embedded Web Chat version within Emulator and verify that the fix propagates to Emulator.
@tonyanziano We ran some tests using a local version of WebChat with this fix and it worked perfectly on Emulator. Let us know if something doesn't work properly and we'll check it!
This will be fixed once the Emulator bumps its Web Chat dependency to the next stable release.