Support finally got back to me and instructed me how to correct. Here was the fix from the support staff:
You need two copies of each image. The one in /forums/core/images/ranks/ is correct.
The other copy however must be in /forums/images/ranks
You have them in /forums/images/ right now. Please move or copy them to a /ranks/folder. You may need to create it if it doesn't exist.
This is due to a bug. Eventually you will only need the 1 copy of the image in the /forums/images/ranks/ directory. The /core/ directory is a temporary work-around for now.
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