Ben,

Thanks for stepping up!

The Magix case number is this: Ticket#2018100117007186

I guess the EULA isn't the issue. I did the IE clear out, got the popup from Xara for acceptance, but the issue still persists.
IE is on version 11.407.17134.0, with Update versions 11.0.95 from KB4466536, which is November 13, 2018

To further the note about the diagnostic output from above, since Xara is apparently using IE for access, I regenerated the URL by running the diagnostic again and went directly via IE to the URL https://pixabay.com/get/eb34b60f2cf5...14499cf6c1.jpg that is being accessed through the Xara program and failing. I successfully got the image in the browser. The same image fails in Xara.

Thanks again for taking a look into whatever is preventing Magix from "handling this correctly". I look forward to your response.