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Ok looks like everything is working great. You were missing the TEXT widget as mentioned here in the Docs – https://appfinite.com/theme-setup/elevate-theme-setup/#fp1
Once you add that Text widget, it activates that Widget Area which shows the default background as well. If you select/upload your own Background image then it will show, as long as you have that widget activated. All of the homepage widget areas ONLY show if you have a widget in place. If not, then nothing will show in that particular area. This is great if you only want to use certain sections of the theme while preventing other unwanted sections from showing up.
So everything is working fine, you just needed to add a widget (in your case, a TEXT widget) to the widget area so it can activate and display your Widget Area and Background Image. Keep in mind, you can use any type of Widget you want in any of the widget areas.
Let me know if you have any questions.
