Well maybe someone has tried and won't work in production, it because public in nuxt is not public that we know in laravel or another rest api, the public folder build and cached in build .output folder, and will cannot be accessed when you store the image / file in public (when build, it was in .output/public), so if you want to store locally, you can create a new folder (anything) and store it in that.
OR
create an endpoint to serve the image (like /images or something)