I think i found the source of the broken img2img problem :
I always work with PNG because it has near lossless compression unlike JPG so when you paint or draw something in an art program the PNG does not degrade your work.
But this time i decided to convert my hand drawn image to JPG and try on Lucid Creation the same image i posted up there (but converted to JPG) and this time it worked :
I then tried again with the PNG version and ended with the same problem as in the 1st post so it looks like unlike the other stable horde UI, Lucid Creation img2img does not work with PNG image, it will only work with JPG.