To programmatically provision an image to the Style Library folder of a SharePoint Online modern communication site the trick is that you must first enable customizations on the site collection or else you will get an “Access Denied” error.
Import-Module "Microsoft.Online.SharePoint.PowerShell"
Connect-SPOService -Url "https://contoso-admin.sharepoint.com" -Credential $Credentials
Set-SpoSite -Identity "https://contoso.sharepoint.com/sites/thesite" -DenyAddAndCustomizePages $false
Then use PnP PowerShell to upload the file:
Import-Module SharePointPnPPowerShellOnline
$assetsFolderPath = "Style Library/myfolder"
Add-PnPFile -Folder $assetsFolderPath -Path ".\myimage.png"
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