Up to now, HEIC/HEIF image files uploaded to LMS are not handled properly by the system, largely due to compatibility issues. It is worth noting that support for both file types is also largely restricted in most web browsers (except Apple's Safari) for the very same reason and generally requires system-level extensions or server-side conversion.
Consequently, these files are not regareded as "images" in the LMS ecosystem, and thus lack a proper thumbnail preview and editing capabilities nor can those files be printed to reports.
It is therefore desirable that HEIC/HEIF files are converted to JPG files when being uploaded to make up for aforementioned limitations.