Okay, just checked the codes and the reason that the avatar is not showing up (it's not a bug), is because:
1. You have configured the module to filter blog posts by specific author.
2. Since all the posts would belong to a particular author, the avatar would be the same for all.
3. Therefore in our module, we do not display the avatars since it doesn't make sense really
4. Having said the above, I have modified the file /modules/mod_easybloglatestblogs/tmpl/default_item.php and at line 21, I have replaced the codes below,
<?php if ($params->get('showavatar', true) && !$bloggerLayout) { ?>
With,
<?php if ($params->get('showavatar', true)) { ?>
This will cause the avatar to render but you get what I mean about item #3 above