Buttons using source image aren't highlighting?

I'm new to making menus in the canvas so please forgive my n00bness.

Right now I am using a source image for my menu buttons and I am wanting to navigate using the keyboard (because my mouse is locked down as a crosshair for the player). But for some reason the highlighting of the button image isn't happening, and I'm afraid to continue building out the menus until I am able to establish basic navigation of the menu buttons with the keyboard.

My immediate assumption is that for some reason the highlight doesn't work when your button is using an image, but I can't seem to find anything backing this up. I've gone through so many forums and triple checked all my inspector components for the buttons and event system, but everything looks in order. Either way, here are a few photos:

Button intent: https://pasteboard.co/IseSeY3.jpg
Button inspector: https://pasteboard.co/IseSz2D.jpg
Event System inspector: https://pasteboard.co/IseSMfi.jpg
Result (no highlight): https://pasteboard.co/IseSWB6.jpg

So any thoughts on this?