Drag & Drop PNG/GIF/JPG into canvs results in "Package(d) ..

I cannot drag&drop PNG, JPG, or GIF files but can drag&drop a BMP into my
Visio sheet. Instead of the graphic showing up, the name of the file appears
with the right-contextual entry "Package Object".

I have tried resetting the file association to default "Windows Picture and
Fax Viewer" for PNG JPG and GIF. I have also reset all file associations to
"default" settings

I am not looking for solution to import with menu actions (e.g. Insert>
Picture), or cut and paste, only drag&drop.

I believe this is a conflict with the file association/OLE Object being
interpreted by Visio in an incorrect fashion, but cannot fix.

Help appreciated!