Adding new Image element does not load Image in Live Preview

Adding Image element during Live Preview does not load the image.

Reproduce:

1)Debug attached example.
2)During Live Preview comment out the code containing the Image element and save the file.
3) The image disappears from the view
4) Uncomment the code and save the file
5) Fails to load the image file with error:
file:file://C:/Users/aurindam/work/examples/testExample/qml/testExample/main.qml_7:6:2:5: QML Image: Cannot open: file:file://C:/Users/aurindam/work/examples/testExample/qml/testExample/QT.jpg