I believe all of the image problems are solved now.
I understand that there is apparently some issues with remote content. Note that kbin.social and some others may have gone into lockdown mode due to load.
Speaking of load, another reason why some federation doesn't appear to work is that the server is pegged. 32 threads of 90% CPU usage.
I bought 4 more servers and I am going to be giving docker swarm a try to spread the load out across 5 systems.
Wish me luck.
(each system is a Hetzner EX101 Intel i9 13k with 64GB of DDR5 ECC memory and a raid 1 nvme v4 SSD - so pretty fast)