As discussed on the Voice User Group Zoom chat today, this is because you're using the Weblog app for your news. This is a fine idea as it means you get a nice archive of stories, as well as easy adding of a main image to each story.

However, the Latest News includelet will only pick up items from the Content Management, not from the Weblog.

Instead, use the Latest Posts includelet on your homepage, and you will find this works nicely! 😀

Thanks

Joe