Word 2013 "This image cannot currently be displayed"

No problems inserting multi-MB jpg files here.  The largest that I tried with as 12+MB.

I finally fixed my issue, but it is more of a limitation.  I am running Word 2013 (Office 365) in Windows 8.1 with a Dell 11 Venue i5 processor.  At first I thought it was the image format (jpeg, png, etc.); however, I tested different file types/formats and the problem persisted.  I decided to test a list of image files and found file size to be my problem.  Regardless of the file type/format, I could not insert an image greater than or equal to a 1MB file size.  Anything below 1MB worked.  Anyone know if this is a known limitation or design flaw?

I clicked File which sends me to the Info tab.  Related Documents is located in the bottom right-hand corner as you described, but the only thing under Related Documents is Open File Location.  Am I missing something?

Thanks for posting this, though.  I'm going to figure out where this Break Link button is eventually.

So I just found this thread and had the same problem with images not linking in my Word doc. I did some more searching and found a solution that actually worked for me.

1. With your Word document open, click the File tab, top-left of the window.
2. Under Related Documents, on the lower right-hand side,click Edit Links to Files.
3. In the dialog that is displayed, select and highlight the images you want to convert from the list.
4. Check the Save picture in document checkbox.
5. Click the Break Link button.
6. Click OK to confirm.

The links are removed and the images are now embedded in your Word document.

I hope it works for others as well!

Please keep in mind you're not talking to Microsoft here, just other users.