Recently upgrade a 4.2 site to 8.0. The 4.2 site had its image storage providers set to FileSystem. I wanted to change it back to database driven so I chose the option to do so. However, I received an error stating "Status Deleted is not supported." Luckily for me, I remembered I had deleted some of the images out of that library and they were still in my recycle bin. Once I removed from the recycle bin, I was able to switch the storage provider. I wanted to report a possible bug as my users generally would not have figured that out and would have expected it to work.
TL:DR - There may be a bug when switching storage providers when the library has had some items still in the recycle bin.