As far as I can tell, it is impossible to update a graphic with a status of released from within the Draft Space. This seems odd.
If the user tries to use the "Update Image" feature, they are stopped by the status of the image.
If they use the Organize Space to find and version the image, and then update it, they can't see it in the Draft Space because it requires someone to edit the Publication's baseline.
What is the recommended workflow according to RWS?

Translate