'The Image is unrecognised' error

Hi @softyoda
This is a bug: Unreal Engine Issues and Bug Tracker (RC-1881)
You can try to use two workarounds:

  1. Resave the JPG images to a different format. The image may lose EXIF metadata, such as the focal length, but that can be manually edited in RealityCapture.

  2. If you have the original RAW images, develop the images to a different format than JPG without the loss of EXIF metadata.