Carousel items in page editor are displaying "sitecore/shell/themes/standard/images/pageeditor/bg_hidden_rendering.png" as the image url instead of the datasource url. Has anyone seen this issue before and know how to resolve?
This is how it should display
The screenshot you've attached shows that you have some personalization rules configured for your Hero Background Content
component.
On your screenshot you're seeing view of for the Default
condition (and there is one more condition - you can tell it cause there is 2/2
near the condition name).
Most probably your component is hidden by default and only displayed when some conditions are met.
You can switch to the second condition by pressing up and down arrows near 2/2
.
You can also click on the 4th icon above (2 persons icon) to check what kind of conditions are defined, edit / add / remove conditions.