Hello Asahabbe and welcome to Apple Support Communities.
It appears you are having some difficulty with image file formats when attaching images to an email message.
Are you using the native Mail app to access your AOL account or are you using a web interface or other app for this?
As far as image formats go, start by taking a look at this:
Using HEIF or HEVC media on Apple devices - Apple Support
While PNG was the standard for a number of generations of iOS, starting with iOS 11, the High Efficiency Image File Format became standard. It sounds like you've already gone to Settings > Camera and chosen the Most Compatible option which would result in new images being captured in JPG format. But older photos captured as PNG files will be shared as PNG unless they are first converted. Without resorting to a third-party app, in order to export a PNG as a JPG would require opening the image in Photos or Preview on a Mac.
Cheers.