From the screenshot in your updated question, the image you want to load is called bailey burlwood.jpg which is already in the Resources folder..
Herein lies the problem:
Instantiate(Resources.Load("bailey burlwood") as Texture2D);
You instantiate prefabs, scripts and components not normal classes like Texture2D.
Your code would have worked if bailey burlwood.jpg is bailey burlwood.prefab and you load it with GameObject prefab = Resources.Load("shipPrefab", typeof(GameObject)) as GameObject; but that's not the case here.
Since the "bailey burlwood" file is a JPG file, you should load like this:
Texture2D baileyburlwood = Resources.Load("bailey burlwood") as Texture2D;
myObject.GetComponent<Renderer>().material.mainTexture = baileyburlwood;
Note that there is no Instantiate function involved. See this post for how to load other image files with different image settings when using the Resources folder.