Lazy images filters the post content and modifies image tags so that the src attribute loads a transparent placeholder image. In SVI case it will change it’s strutucture therefor preventing SVI from working properly.

My advise is to turn it off. Because SVI are lazy loads itself.

By default, when a web page loads, it attempts to also load all of the images that it sees in the source. SVI images will only load when they actually appear on-screen reducing bandwidth usage by as much as half of what is used without lazy images enabled.