If you are facing issues with images not rendering properly after updating post content via REST API, it is likely that the HTML markup for the images is not being created correctly. One way to ensure that the images are inserted correctly is to use the WordPress block editor to create the post content and images, and then use the REST API to update the post.
Alternatively, you can try using the WordPress media library to upload the images, and then use the REST API to retrieve the image URLs and insert them into the post content as HTML image tags. This will ensure that the images are properly formatted and will render correctly on the front-end.
Another option is to use a third-party library like the wp_wpcat_json_rest Plugin to handle media uploads and retrieval via REST API. This plugin can help you create blocks and render images properly in your app.
Finally, you can also consider using a plugin like Jetpack, which offers a REST API module that allows you to manage your site’s media library and upload images via REST API. Jetpack can help you handle image uploads and formatting, and ensure that images are properly rendered on the front-end.