I still cant get for VEGAS Effects to work properly. But I found another issue where VEGAS Images is self destructing with the edit when bridge between VEGAS Pro.

HOW VEGAS IMAGE WORK IN GENERAL

- If you only use VI just for photo editing, you can import the images into VI and do ur edit and save the project. It wont affect the actual media in your computer. If you move/delete/rename the media in ur PC, VI will show up an error saying file is missing. Similar like Adobe lightroom. Like how we import Video into VEGAS Pro. But again, it wont affect the actual media.

VEGAS Pro to VEGAS Image is destructing edit (Vice Versa)

- The moment you click SEND TO VEGAS IMAGE button above VP preview window, VEGAS Pro will prompt with a window to save a snapshot, so I assume that would be ORIGINAL MEDIA for VEGAS IMAGE to read and edit.

-VEGAS Pro automatically import the snapshot file into media pool, not VEGAS IMAGE Project. Funny enough both SNAPSHOT file & VEGAS IMAGE file is seen as PNG in VEGAS Pro.

-VEGAS IMAGE will open up with the SNAPSHOT file loaded, you do ur edit as usual. the moment you hit SAVE in VEGAS Image, it will reflects the edit inside VEGAS Pro timeline. Nice, work just great. BUT if you want to undo your edit in VEGAS IMAGE, its already burn into the image. VEGAS Image is destructing the source file instead. And why VEGAS Pro import the source file and not VEGAS Image?

Here a sample video how VI destruct the edits.