Cover.jpg in album folder not showing up

First problem I've had in many years. I just did a new install of mp3tag (v3.02) on a Windows 10(64) machine. Imported the setup from an existing install on a different computer and also loaded the "custom columns" file. New mp3tag install looks just like other install and all seems to work EXCEPT the cover.jpg album art contained in each album subfolder is not showing up in either the panel or in the artwork section of "extended tags"

The artwork shows up in foobar2000, and even in mp3tag if I right click on the blank album art in the "panel" and select "add cover", mp3tag shows me the correct "cover.jpg" file from the current subdirectory.

Same album files show art perfectly in a different install using same exact files. I'm stumped and appreciate any pointers. Thanks.

EDIT. creating the file as "folder.jpg" doesn't solve the problem. And this is not just one album, the problem occurs with all albums.

EDIT2. I uninstalled and did a plain install of mp3tag (without importing my other config) and problem is the same.

See if you have ticked "Do not show covers from folders" in Tools>Options>Tags

Aha. The "don't display first image from file directory as cover art" was ticked. Unticked it and all is well. Thanks!