This does the job visually:
<Grid> <Image Source="{Binding MyImage}" /> <Image Source="{Binding MyWatermark}" /> </Grid>
This is certainly the same effect without any work. If you want to make it literally make the watermark a part of the original image, uploading to the service is your only current option. Without the Render() method on WriteableBitmap there is no other option for you. The problem even is that the XAML Toolkit does not solve this problem. This is a general request.
But depending on your use case, this may be exactly what you want!
I hope so. Good luck.
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