A Fancy Button has two images: Background (outer) and Background (inner). The process to update the image for either one is the same, except for one step, which will be noted in the following instructions.
Who can use this feature?
System Administrators | Owner
Instructions
Navigate to Modules, then Content, and finally Graphic Links
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Select the category that contains the Fancy Button you want to modify

Select Choose an Action, and then Modify next to the desired Fancy Button

Click the Fancy Button to start editing

Select either the Background (outer) or Background (inner) option at the top

Expand the Background Image

Click Choose Image... to select a new image

Note: If you have an existing background image and want to change it, click Modify.

Locate an image and Insert it

Configure its Position

Position X: Move the image left or right
Left/Center/Right: Move it to the left/center/right
px: Move it via pixel dimensions
Position Y: Move the image up or down
Top/Center/Bottom: Move it to the top/center/bottom
px: Move it via pixel dimensions
Repeat: Choose to repeat the image Vertically, Horizontally, or Both
Click Insert Fancy Button

Click Save or Save and Publish

Save: Saves as a draft
Save and Publish: Saves changes and publishes to live view