RESOLUTION:
1. Check this article:
https://support.quest.com/migrator-for-notes-to-sharepoint/kb/233432/-delay-load-image-cannot-be-extracted-is-shown-instead-of-the-embedded-picture-233432-
2. After unchecking the "Display images after loading", the document needs to be edited and resaved.
Or edit the document, re-paste the image again and save it.
3. Try to fix that Domino *.nsf first and test again
IBM Lotus discuss methods on how to fix database corruption here
http://www-10.lotus.com/ldd/dominowiki.nsf/dx/Database_Corruption_Troubleshooting_Guide
See also this link that might help
https://support.quest.com/kb/123995