EPM not updating background image for Digium D40

I have several Digium D40 phones. I have configured a D40 template in Endpoint Manager that includes a background image (bg-d40.png). After saving the configuration and applying to the phone, it reboots and comes up as expected but without the desired background image. The image is still the default Asterisk image. I looked at the configuration file that was created and this line shows the image configuration as expected:

If I browser to the image link, the correct image is displayed. I also noticed that the file was converted from PNG to JPG by EPM.

Is there an issue with EPM and Digium phone in setting the background image?

bump…

I suggest opening a bug report at issues.freepbx.org