Maybe you could try the following command to see if it works that way. Are you sure jpg images are supported? Maybe try with a png file.
neofetch --image ~/path/to/img.png
So in your case it would be
neofetch --image ~/zedlogo.jpg
Edit: also probably it’s best to leave the backend on “auto”.
Edit2: Did you check the wiki? Maybe you need other optional requirements.
Edit3: Also maybe your terminal doesn’t support it. Inside the link they suggest to install w3m-img and use " w3m google.com" to check if it works.