Do VCDs still work?

I have a few vcd based entities that no longer work, console says they are missing, so I go to recompile the image file from the faceposer in the bin folder and this happens:

http://puu.sh/61Ao5.png

Followed by a crash.

Garrysmod no longer relies on the scenes.image I know but I cant think of any other reason the scenes refuse to play and get marked as missing.