No, there is no visible error message, but when the browser goes to fetch the image it gets a 404 not found in the backend.
But to illustrate my point, these support forums use your very own gluu server for authentication.
https://idp.gluu.org
They have a logo in the upper left, that uses this image:
https://idp.gluu.org/oxauth/img/logo.png
But when I download this image, and upload it to my own gluu server using the interface, it does not work.
After extensive testing using images found on google:
https://www.google.com/search?q=logo&biw=1366&bih=643&tbm=isch&source=lnt&tbs=isz:ex,iszw:240,iszh:160#q=logo&tbs=isz:ex,iszw:240,iszh:160,ic:trans&tbm=isch&imgrc=UCczZ5BdS1G5TM%253A%3BTVdTUECv9j-plM%3Bhttp%253A%252F%252Fimg3.wikia.nocookie.net%252F__cb20150202113759%252Flogopedia%252Fimages%252F7%252F73%252FLogo-ee.png%3Bhttp%253A%252F%252Flogos.wikia.com%252Fwiki%252FFile%253ALogo-ee.png%3B240%3B160
I have determined that the interface does not work with images that have transparency.
I think this is ludicrous seeing as the default logo definitely has transparency, and you on your very own idp.gluu.org has managed to use an image that also has transparency, but any image I try to upload that has transparency does not work.