POST with a "file" is not working in Retool, but works in Postman

I am trying to call a simple REST API from retool and I can't see it passing the file property correctly. The file is in the image component. Here is the screenshot of it not working.

Here is the image of working API:

Appreciate any thoughts. I am new to Retool.

Hi @mputhenveetil what is {{PanelImage.src}} evaluating to? It seems like it may not be in the correct format.

If you hover over file, it will show that it's expecting a binary string or an object: