Unable to load asset - also external like: packages/flutter_gallery_assets/people/square/sandra.png

I am unable to load any assets on any platform:

flutter --version
Flutter 3.4.0-28.0.pre.123 • channel master • https://github.com/flutter/flutter.git
Framework • revision 4aa27d844e (9 hours ago) • 2022-09-22 21:00:22 -0700
Engine • revision a5489ce4f9
Tools • Dart 2.19.0 (build 2.19.0-229.0.dev) • DevTools 2.17.0

From documentation:

1. I have assets folder in the root
2. I have assets with one indent and items with two indent

     assets:
      - assets/myimage.png

3. I am referencing assets as assets/myimage.png

AssetImage('assets/myimage.png')

Also tried using external library flutter_gallery_assets same error:

Referencing:

AssetImage(
            'people/square/sandra.png',
            package: 'flutter_gallery_assets',
          )

Error:

Error while trying to load an asset: Failed to load asset at "assets/packages/flutter_gallery_assets/people/square/sandra.png" (404)

======== Exception caught by image resource service ================================================
The following assertion was thrown resolving an image codec:
Unable to load asset: packages/flutter_gallery_assets/people/square/sandra.png

When the exception was thrown, this was the stack: 
dart-sdk/lib/_internal/js_dev_runtime/private/ddc_runtime/errors.dart 266:49  throw_
packages/flutter/src/services/asset_bundle.dart 258:7                         load
dart-sdk/lib/_internal/js_dev_runtime/patch/async_patch.dart 45:50            <fn>
dart-sdk/lib/async/zone.dart 1660:54                                          runUnary
dart-sdk/lib/async/future_impl.dart 147:18                                    handleValue
dart-sdk/lib/async/future_impl.dart 767:44                                    handleValueCallback
dart-sdk/lib/async/future_impl.dart 796:13                                    _propagateToListeners
dart-sdk/lib/async/future_impl.dart 567:5                                     [_completeWithValue]
dart-sdk/lib/async/future_impl.dart 640:7                                     callback
dart-sdk/lib/async/schedule_microtask.dart 40:11                              _microtaskLoop
dart-sdk/lib/async/schedule_microtask.dart 49:5                               _startMicrotaskLoop
dart-sdk/lib/_internal/js_dev_runtime/patch/async_patch.dart 166:15           <fn>
Image provider: AssetImage(bundle: null, name: "packages/flutter_gallery_assets/people/square/sandra.png")
Image key: AssetBundleImageKey(bundle: PlatformAssetBundle#2e7c6(), name: "packages/flutter_gallery_assets/people/square/sandra.png", scale: 1)
====================================================================================================

What am I missing?

  [1]: https://pub.dev/packages/flutter_gallery_assets