Merge fields in acknowledgment email appear with broken images

When submitting a sponsorship transaction through a Sponsorship Form part, an acknowledgment email is received. Any merge fields included in the email appear with broken images instead of the actual data.
Download and install the latest patch, which contains all fixes from previous patches. If you are running an older version, download and install the latest version and then the patch. 

Environment

 6.40.1535 patch 7
 6.40.1535, patch 10

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