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Best Image Optimization? Next Image or img tag inside picture tag with sources such as webp?

Standard Chinchilla posted this in #help-forum
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Standard ChinchillaOP
I have noticed even eslint rule no-img-element is disabled when img tag is within a picture tag which is making me question what is the best optimization here? Thoughts?

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Wouldn't it be the next <Image> element since it automatically optimize your images using either webp or avif, and iirc it manages lazy loading pictures