Another option (at least in v5) is to use the Box component and select the underlying html element to be img as given in the example below (copied from official docs for v5)
This <Box/>
method is the preffered way of doing it. The <Paper/>
method too is a good idea.
The basic reasoning is that only MUI components support the sx
prop ie. only they can fully use the MUI systems features.
Thus, it doesnt make sense to use the native <img/>
component in the markup, as it does not support sx