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May 18, 2016 8:14 PM in response to kirwintgpby PeterP.Syd,I have just experienced the same problem. Running Keynote 6.6.2 under OSX 10.11.4 on a 2010 MBPro.
The Keynote file is an upgraded-from-old-format keynote.
I was running Pages (same release) concurrently , and a lot of other programs including Office 2016, Graphicconverter 9, etc.
I tried shortening the file name (sometimes works with Office 2011).
I tried changing file type (saved the .png as .jpg). Renamed the file to remove the file extension (definitely didn't work), changed it to .jpg and to .jpeg ..... all to no avail.
Tried copying a pre-existing pasted in image on same slide and then selecting "Replace" under Image tab of right Side-panel.
Tried creating a clean inserted slide. No go.
Every time got the same "Cannot insert image "...."" error panel
Only thing that enabled it to work for me was to Restart the machine.
That has worked, and am now not running Pages or Office at same time to see if problem reappears