Seems like JS doesn't quite understand "#joomlaImage://" part in image's URL (data-src). it just doesn't load target image, showing ALT text instead. JS adds excessive part "/component/article/" at the beginning of image's real URL.
It doesn't work specifically with Joomla articles content. SP Page Builder elements seems to load fine.
Joomla! 4.0.2
Helix Ultimate 2.0.1