Hi,
I’m not lying to you either, maybe Chrome has changed something and it is not showing ICO files in page content anymore and before it used to (I don’t know TBH), but ICO file are not meant to be used as web images.
The ICO file format is an image file format for computer icons in Microsoft Windows.
The only ICO file you should use on a website is the favicon that appears next to your page titles in the browser’s tabs.
All images added to a website page should ideally be jpg if no transparency is needed and png if a transparency is needed. A latter options are gifs that should be used only if an animated image is needed.
Right now you did NOT change to a png, you uploaded another ico file: http://www.discoversma.com/wp-content/uploads/2016/03/restaurant.ico
Thank you