I noticed in the console when i load my game a error message about an item image i created, which does display in the game editor without any problems. So not sure if this is a bug or ?

That is strange, normally the "Invalid image" warning would only show if the image file cannot be found. So the image does show for the item if you are viewing it in the Item Editor?

Yes it shows up in the Item Editor. Actually i just had to load it in again but it displays the image i created on the left, i exported the game and ran it again to see if the error displays again and it does. I have uploaded the image in question on Discord.