Outline mode has been selected, and I have linked, then embedded, an image. However, when I select the option to view images in Outline Mode, the image does not appear properly- rather, it appears as a two-colour dotted or indexed image. This is how the image appears.

It's not even a smooth grayscale image, let alone the original colour image. I am running the latest version of Illustrator CC. The display adapter is Intel HD Graphics 4000. I'm not aware if I need to fix anything with the display adapter, or whether settings in Adobe Illustrator can set this right.