WooCommerce 3.5.4 and WordPress 5.0.3 REST API: Image upload broken (woocommerce_product_invalid_image_id)

I am using v2 of the REST API. This code worked fine on an older version of WordPress and WooCommerce. I cannot upload an image to a product.

The first error after the upgrade I got was:

array (
  'code' => 'woocommerce_product_image_upload_error',
  'message' => 'Invalid image: Sorry, this file type is not permitted for security reasons.',
  'data' => 
  array (
    'status' => 400,
  ),

Resolved by adding following in wp-config.php to the bottom of the file:

define('ALLOW_UNFILTERED_UPLOADS', true);

The 2nd error I cannot figure out. The image won't upload and leaves a ghost image where it was uploaded.

Code

<?php
require __DIR__ . '/vendor/autoload.php';

use Automattic\WooCommerce\Client;

$woocommerce = new Client(
    'http://localhost/wordpress', 
    'ck_44b92c00ea35e6cc59c89c29051bf67c22e0df3a', 
    'cs_dd833592a1ef7a00a82c1711fd455db2e4c5bd15',
    [
        'wp_api' => true,
        'version' => 'wc/v2',
    ]
);

$data['create'][] = array(
    'name' => 'TEST',
    'regular_price' => '4.50',
    'description' => 'TEST DESC',
    'type' => 'simple',
    'images' => array(
        array(
            'alt' => '',
            'name' => '',
            'src' => 'https://via.placeholder.com/350x150',
            'position' => 0,
        ),
    )
);


$response = $woocommerce->post('products/batch',$data);
$headers = $woocommerce->http->getResponse()->getHeaders();
var_dump($headers);
var_dump($response);

Response Data

array(13) {
  ["Date"]=>
  string(29) "Thu, 24 Jan 2019 18:22:16 GMT"
  ["Server"]=>
  string(6) "Apache"
  ["X-Powered-By"]=>
  string(9) "PHP/7.2.1"
  ["X-Robots-Tag"]=>
  string(7) "noindex"
  ["Link"]=>
  string(63) "<http://localhost/wordpress/wp-json/>; rel="https://api.w.org/""
  ["X-Content-Type-Options"]=>
  string(7) "nosniff"
  ["Access-Control-Expose-Headers"]=>
  string(27) "X-WP-Total, X-WP-TotalPages"
  ["Access-Control-Allow-Headers"]=>
  string(27) "Authorization, Content-Type"
  ["Expires"]=>
  string(29) "Wed, 11 Jan 1984 05:00:00 GMT"
  ["Cache-Control"]=>
  string(36) "no-cache, must-revalidate, max-age=0"
  ["Allow"]=>
  string(16) "POST, PUT, PATCH"
  ["Content-Length"]=>
  string(3) "139"
  ["Content-Type"]=>
  string(31) "application/json; charset=UTF-8"
}
array(1) {
  ["create"]=>
  array(1) {
    [0]=>
    array(2) {
      ["id"]=>
      int(0)
      ["error"]=>
      array(3) {
        ["code"]=>
        string(36) "woocommerce_product_invalid_image_id"
        ["message"]=>
        string(27) "#82 is an invalid image ID."
        ["data"]=>
        array(1) {
          ["status"]=>
          int(400)
        }
      }
    }
  }
}

from WooCommerce 3.5.4 and WordPress 5.0.3 REST API: Image upload broken (woocommerce_product_invalid_image_id)