Everything seems correct from the snippet you provided. The only thing that might be causing the issue is if the image url is not defined correctly - is the image placed in a folder for example ? I have tested the case with:
image = new BitmapImage(new Uri("../img/myImage.jpg", UriKind.Relative));
where img is a folder where the image is placed. In that way everything works correctly.
the Telerik team
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