Is it expected that satellite imagery can be added using Add Location in SketchUp Free? It’s not working for me - clicking Map Type does not change it to an image. Googling around for quite a bit does not give the answer - I just find outdated confusing information on all the old versions of SketchUp. I also can’t tell whether updating to a paid version would give me what I’m after.
No. Only the map is available for SketchUp Free.
To get imagery you would need to upgrade to Sketchup Pro.