Looks like this URL doesn't play nice with the IMAGE formula. As a rule of thumb, generally the URL needs to end with the file extension (e.g. ".jpg" or ".png"). The documentation for the formula specifically states: "You can only use URLs that aren't hosted at drive.google.com." If that seems silly, trust me--I agree! You can learn more here.
Whenever I need to get a permalink from hosted images, I usually use Imgur or Google Photos, which both allow you to right click > copy image address.
Hope that helps!