I added a folder called Title and imported a cover image by going to Edit -> Insert -> Image from File.
However, when I compile and try to select the image for the cover it doesn’t show up in the dropdown.
What am I doing wrong so I can select the image for the cover?
Either drag the photo into the binder from the Windows file explorer, or go to file->import->files. The difference here is that you added the image to a text file (a folder can act just like a text file in this regard). By importing the image file directly to the binder, you’ll be able to select it for compiling a cover photo.
Note that the image cannot be imported into the Draft/Manuscript folder, but the Research folder will work nicely.