If I disable the image downloads then both images appear (Word fetches the images on-the-fly), re-enabling image downloads still only shows the directly linked image.
If the URL to the image hosted by PHP doesn't end in *.jpg then the image doesn't appear in the Word document no matter if downloading images is enabled or not.
Enabling image downloads (it was already enabled) embeds the images into the Word document but there's something wrong with the way they are linked internally.
Any ideas? I've read through the information and there's nothing helpful there. What could be causing PHPDocX to be breaking the links with the embedded image?