@abowen-hbros, thanks for sharing! this is a global change as noted here by Google Google Workspace Updates: Upcoming changes to third-party cookie requirements in Google Drive
Others complain about this too… Images from Google drive in embedded HTML no longer working - Sites Community
In general, Google is rolling out changes on multiple systems, including Chrome, to get rid of third-party cookies, and it affects tons of apps/use cases. Preparação para a desativação dos cookies de terceiros | Privacy Sandbox | Google for Developers
The solution you shared: https://lh3.google.com/u/0/d/file-id only works when one is logged in to Google. I tried it on incognito, and it did not work, unfortunately.
My quick fix here would be to explore also putting files/images into other file/image hosting services like dropbox/box etc…