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PHP code can insert image to excel file and open it correctly in MS Excel?
I want to add images in .csv file with the help of PHP script. I also don’t know if it is possible or not.

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No, that is not possible straight away. By the specs, CSV files are text-based, they do not have anything like images or other type of binary data.
So unless both the generator and the reader agree on a format, such as a Data-URI, there is no way to include graphic data.
You might want to create a different kind of file, like a spreadsheet (.odt, .xls/.xlsx), however those are not CSV files you ask for.