problem: I cannot insert an image file into Visio 2013 (INSERT > PICTURES > (any graphic formats .png, .jpg, etc).The popup message is: "Import of image file failed: '[name of the image file]'". Pasting the image also didn't work and complained with a pop up about not enough memory.
impact: cannot import images in Visio
solution: install Visio KB3114720Here is a link to the update for Visio 2013 (KB3114720) (Applies to: Microsoft Visio 2013 Service Pack 1)
Interestingly enough making a new windows profile and trying to insert an image in Visio in the new profile worked fine. Opening that saved drawing in the profile that was not working showed a box with an X inside where the image had been successfully inserted in another profile.
Pasting from mspaint did work, but things like transparency were lost in this case.
Pieter Pessemier @ answers.microsoft.com