Hi, it seems I'm doing something wrong. I've spent half the day trying to work this out. Text shows in outline mode, but the image does not show at all. The image shows in normal mode, but the text is just random filled shapes. I've tried to reset the system preferences, but that did not help. How do I get both image to show? I know it's a simple thing, but it's just not coming. If this works out, you might get a picture.

Remove the stroke of the text : it's way too thick. A bitmap image will not be displayed in outline mode, it's a normal behavior. On your screenshot,  the upper image must be in normal mode, the bottom one in outline mode : it seems you inverted the legend, isn't it ?

once you are happpy with the text, right clic on text icon on toolbar and click on "this tool own style" and "take from selection", so that when switching from one tool to text tool, you won't get the last applied settings of the former tool for text tool.