Just tested, and you are correct, it throws that error. Not sure what has changed to make this happen....will need to do some testing.
This part doesn't throw an error, but I don't know where exactly it saves the file. Maybe it doesn't even save? Or have the libraries been changed again in the newer android version?
Of course, it would be better if the direct conversion worked...
Usually in the ASD... also depending on how you set the default file scope in the Screen1 properties...
Taifun
DefaultFileScope = "App". I guess that's okay.
Maybe it could be "Shared"?
In a last post, Anke wrote:
Should I enable readout (Image)?
Now fixed, download extension again, and restart companion, and try again. You may find it a bit slow with complex images, so perhaps use the progress dialog or similar....
All credits to @Kumaraswamy for his quick response and fix 
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Thank you very much. I will try it soon and give feedback. Have a good day.
Thank you very much for your very quick response. It works perfectly fine. There is no problem with "a little slowness", as I have options to avoid this observation. It does its job. I wish I knew how and how you do this.
The code is provided above in the first post
Update
Now added a fifth "little one", Base64Convertor.
This will convert a binary file to a base64 string, and convert a suitable base64 string to a binary file.
You will have to set absolute paths (possibly full paths in some circumstances) to the files...
You can download this extension from the first post in this topic.
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Really useful extension, I was searching for 
Which one? ( I am guessing Base64Convertor)
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ImageToBase64 is what I was searching for😁
Don't load the base64 string to either a label or textbox, invariably AI2 cannot handle it. Store it only to a variable.
It is only stored in the Variable as you can also see above in the image,
Label1 carries the path of the image got from filePicker.
As I can also see in your blocks image:
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