Your code only deals with one pic. Pictures.Insert() insert links to pics.
I used Shapes.AddPicture() to embed the pics though it can link pics too. Put this in a Module and call as you like. Use whichever Set s that you like best.
Sub Main()
Dim c As Range, r As Range, p As Range
Dim s As Shape, fn$
On Error Resume Next
Set r = Range("B2", Cells(Rows.Count, "B").End(xlUp))
For Each c In r
Set p = c.Offset(, 2) 'Column D
fn = c.Offset(, 1) 'Column C value
Set s = ActiveSheet.Shapes.AddPicture _
(fn, msoFalse, msoTrue, _
p.Left, p.Top, 80, 95) 'embed files
'Set s = ActiveSheet.Shapes.AddPicture _
(fn, msoFalse, msoTrue, _
p.Left, p.Top, p.Width, p.RowHeight) 'embed files
s.LockAspectRatio = False
s.Name = c
Next c
End Sub