Assets/Images not being served...

Versions

Angular CLI: 1.6.6
Node: 6.9.4
OS: win32 x64
Angular: 5.2.2
... animations, common, compiler, compiler-cli, core, forms
... http, language-service, platform-browser
... platform-browser-dynamic, router
@angular/cli: 1.6.6
@angular-devkit/build-optimizer: 0.0.42
@angular-devkit/core: 0.0.29
@angular-devkit/schematics: 0.0.52
@ngtools/json-schema: 1.1.0
@ngtools/webpack: 1.9.6
@schematics/angular: 0.1.17
typescript: 2.5.3
webpack: 3.10.0

Repro steps

1. add any image to /src/assets/images/
2. reference image in HTML
3. ng serve

Observed behavior

image is not found Request URL:http://localhost:4200/assets/images/logo.png Request Method:GET Status Code:404 Not Found

I have made sure that my angular-cli.json lists the assets folder… Assets folder directly under src directory HTML is typical

  <img src="./assets/images/logo.png"/>

Image is 404

Here is a minimal example… https://github.com/smatthews1999/testng