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The css that hides "There is currently no image..." when an image is present is not being generated properly on page loads.
views/refinery/admin/_image_picker.html.erb - line 24
How do you mean isn't being generated properly? What happens instead?
Can you send the generated HTML source around that line please?
This is the opening span tag that it creates:
<span class='no_picked_image_selected nothing_selected' style='display: none;'>
Ensure that display none style is html_safe.