Hey Jim,
I've also been using Google temporarily for my photo-hosting, may become a permanent thing.
On your posts at my end, I see a link I need to click. That works, I'm not complaining but a photo embedded in the post is always better.
FWIW, here is a blog post I found when I was trying to figure out how to use Google Drive as a photo host. They keep it very, very quiet. Doing it right is a bit convoluted but as you've found out, it works.
https://www.rainsberger.ca/2016/02/19/direct-link-to-image-in-google-photos-for-html-image-tag/
I think you are missing just one step to get your images to show embedded in your posts.