If you ever face a situation where you are unable to open images using the default windows fax and picture then first of all check the file association. For example we are trying to open .jpg image. We need to make sure that Windows picture is set to JPEG or .jpg.
If that is alright, check if there are various shortcuts on the desktop. Try placing all the shortcuts in a folder and then check if you are able to open the images. This should resolve the issue. It is little weird but it has resolved the issue.
If you have any take on this or you have experienced any thing as such, please share your experience.