I’m running into the same issue, except the image files aren’t attached whether Zip uploads is checked or not. It seems they are deleted before they can be attached, producing the following error in the Gravity Forms log:
2018-03-12 17:26:06.566267 – DEBUG –> GFCommon::send_email(): PHPMailer class returned an error message: Could not access file: /path/to/file/image.png
Same issue here. Would love a fix since the Hide Backend feature is one of the main reasons I use this plugin, and I can no longer use it at all.
I’m experiencing this issue as well.