The Google URL typed in quotes did work like this:
Background Image: "https://www.google.com/images/branding/googlelogo/1x/googlelogo_color_272x92dp.png"
I don't think there is any "issue" with my image (not sure what you mean there) but let me know if you see any issues here:
-ACCESS ISSUE? I am global administrator on the tenant, and the site collection administrator where the image resides. There are no cases of broken inheritance or IRM
-FILE FORMAT? It is a PNG file which I assume is supported. It opens in all browsers when it is clicked on from the SharePoint Asset Library without issue.
-FILE SIZE? 369 x 586 pixels and 234 kb
I also went ahead and took mr-dang's advice and created text boxes to show what the two expressions are returning. I think I'll keep a debugger screen from now on (I used to do that in InfoPath too). Here is that that looks like - notice the weird prefix on the urls:

In XL I would have tried to use the Right() function to remove the prefix:
Right(LookUp(PhotoLinks, ID =1,URLLink),len(LookUp(PhotoLinks,ID =1,URLLink)) - 49)
I tried that (and so the returned value starts with https now), but it still doesn't make the picture show in the background. (Perhaps it needs to be decoded? Argh....) If this is a bug, and I work around with functions like Right() etc...I'm concerned my app will break when the bug is resolved.
FYI: This effort seemed WAY harder than it should have been to set a background image. Just sayin' 
Thank you all for your help!
Audrie