Feedback for anyone else who might have some idea …
Interesting:
It’s on a sub-domain.
Hosting provider ifastnet.com
which offers Railgun connection → not active, disabled.
Caching Level: Standard
Borwser Cache TTL: Respect Existing Headers
Page Rule for assets on that sub-domain assets/*
using 1 Page Rule:
Cache Level: Bypass
Transform Rule for HTTP Response Header Modification rule:
If hostname contains sub-domain
URI path contains assets/*
→ Set static: cache-control: max-age=0, no-cache, no-store, must-revalidate, private
→ Remove expires
Image resources gives:
cache-control: max-age=2592000, public, proxy-revalidate
cf-cache-status: DYNAMIC
expires: in 2 days
last-modified
Upon browser referesh - it shows correct, the “new” uploaded image (which is successfully replaced with the old one).
UPDATE:
And yet, no hosting access so I cannot provide more feedback in that terms.
Will post an update.
UPDATE 2:
When I disable Cloudflare, I am afraid caching configured on hosting provider (cPanel used) → Nginx used for “static files” cache as far as “.htaccess” file doesn’t contain any particular HTTP headers for it:

UPDATE 3:
When htaccess
file is modified and origin is sending the needed HTTP headers, working fine (despite above settings on Cloudflare):
# Tomislav Skype Fritex Cloudfalre, 2022 - fix
RewriteEngine On
<FilesMatch "\.(jpe?g|png|gif|webp)$">
FileETag None
<IfModule mod_headers.c>
Header unset ETag
Header set Cache-Control "max-age=0, no-cache, no-store, must-revalidate"
Header set Pragma "no-cache"
Header set Expires "Wed, 12 Jan 1980 05:00:00 GMT"
</IfModule>
</FilesMatch>
No issue when new image is uploaded and replaced, it shows the new uploaded one immediately in the web browser.
Somehow I believe Nginx’s default config was sending those HTTP headers, which I overwritten by the htaccess file.
Working now.
Conclusion:
And, somehow Page Rule “bypass” (okay, returns DYNAMIC - good) and Transform Rule for “no-cache” at Cloudflare does not seem to override them (those sent via Nginx “by default” I believe) 