use fromarray

app.py

@@ -36,9 +36,9 @@ generator = torch.manual_seed(0)
 # inference function takes prompt, negative prompt and image
 def infer(prompt, negative_prompt, image):
     # implement your inference function here
-    inp = PIL.Image.create(image)
+    inp = PIL.Image.fromarray(image)
 
-    cond_input = conditioning_image_transforms(image)
+    cond_input = conditioning_image_transforms(inp)
     #cond_input = T.ToPILImage(cond_input)
     
     output = pipe(