As I feared, the log file is not much help, at least for me.
I can confirm that the READ_IMAGE function returns an error (which it should not and that trying to copy and paste the picture to embed it in the Prime file threw the error you mentioned.
It looks to me that Prime does not like the JPEG format your file was created in.
I opened your picture in an image editor and resaved it as JPEG. After that the file was half the size and Prime seems to be happy with it.
READ_IMAGE imports the file without any error and WRITEBMP correctly writes a rotated BMP file (you should add the extension BMP to the file name).
Dragging the file to Prime still fails but inserting the file via "right click - insert image" works OK.
I attach the modified Prime file with the embedded picture as well as the resaved pic.