We have made fix of broken image links in block 'Latest Products' after release 3.0 has been issued.
 
Please download updated version of the file from here
http://www.viart.com/downloads/block_products_latest-3.0.zip
Then extract file block_products_latest.php into the root folder of your shop replacing existing one.

Is this applicable to 3.2 as well?

Hi,
 
Release 3.2 has this bug already fixed in it's distributed package.
 
WBR,
ViArt Support Team