Codex Desktop 26.707.51957: Markdown preview shows literal HTML breaks and omits local images

What version of the Codex App are you using (From “About Codex” dialog)?

26.707.51957

What subscription do you have?

Not relevant to local file rendering.

What platform is your computer?

macOS 26.5.1 (build 25F80), Apple silicon (arm64).

What issue are you seeing?

The rendered preview for a local Markdown file is only partially rendered in Codex Desktop 26.707.51957 (the combined ChatGPT/Codex desktop release).

• Markdown tables receive table styling, confirming that View preview is active.
• Inline HTML <br> elements are displayed as literal text instead of line breaks.
• Local Markdown images such as ![alt](./image.png) are not displayed.

This is a regression from the previous Codex file preview, which rendered Markdown prose, HTML line breaks, and image links as document content. It prevents using Codex as a Markdown editor with a reliable visual preview.

What steps can reproduce the bug?

1. Create a folder containing test.md and openai-wordmark.png.
2. Download the image from OpenAI's official image CDN:

``sh
curl -L 'https://images.ctfassets.net/kftzwdyauwt9/2fkAIT3PbTRytKTBx9cx8o/229bc28cb338565fe735d8935abc801f/OpenAI_Wordmark_Gif.gif?fm=png&q=90&w=800' -o openai-wordmark.png
``

1. Save the following as test.md in the same folder:

```markdown
# Markdown Preview Minimal Reproduction

This sentence contains bold text and an OpenAI link.

First line<br>Second line


| Test | Expected preview | Content |
|---|---|---|
| Inline HTML line break | Two lines | First line<br>Second line |
| Local image | The OpenAI wordmark |  |
```

1. Open test.md in Codex Desktop.
2. Choose View preview, not View source.

What is the expected behavior?

• The two <br> elements render as line breaks rather than visible tags.
• Both references to openai-wordmark.png display the image.
• The rest of the Markdown renders as a normal document preview.

What actually happens?

• The table is styled, so the file is in Preview mode.
• <br> is displayed literally in both the paragraph and the table cell.
• Neither image reference displays the image.

Additional information

• The reproduction folder contains only a Markdown file and the official OpenAI wordmark from the OpenAI Design Guidelines.
• This partially overlaps #31389, which reports relative local image paths failing in build 26.623.141536 while absolute paths still render. The current report is for build 26.707.51957 and also covers literal HTML breaks, indicating a broader Markdown preview regression.
• Related but distinct reports include #21707 (paths containing spaces), #20166 (non-ASCII paths), and #14576 (Windows absolute drive-letter paths).