These functions don't like BITMAP type resource data, only RCDATA type resource data.
IDB_BITMAP1 BITMAP "Image.bmp";
bit in the rc file to
IDB_BITMAP1 RCDATA "Image.bmp";
The second stores a copy of the file as is; the first one strips off the BITMAPFILEHEADER from the start of the file. The WIC functions the D3DX functions use (specifically CreateDecoderFromStream) seem to require that header be present or they fail. It ain't there, so they fail which make the D3DX function fail.