The word image in the Hebrew בצלמנו in v26 speaks of being a representative form, like a shadow. It takes on the form of the original and is intended to imitate the original.
Its followed by the word translated likeness כדמותנו to further explain and build on the idea that it’s about being similar to God.
It would at first impression appear that this is referencing the physical appearance and this might include the physical appearance but it especially means to be a representative in likeness to God.
However the Hebrew continues to speak of dominion וירדו and if one were to take the translation punctuations out, one could read the text as saying something to the effect, ’let us make man in our image and likeness with dominion over the earth‘
In which case the emphasis doesn’t fall so much on the exterior appearance but the position of authority. Man was intended to govern on the earth as God governs in the heavens.
Man is the imager of God, the representative or in modern language the ambassador of God in the earth, exercising dominion over the realm below the firmament