Selecting an SVG as an Image Field value
AFAIK the jpg/png/gif limitation is hardcoded in the image field, you can't solve this (only) with configuration.

SVG Image allows .svg files in core's image field. You can use the standard image formatter with it (or better: you must use the standard image formatter, it will not work with Focal Point or similar)

SVG formatter uses the file field and provides an SVG formatter for the file field.

Both also work with media entities, but I've not tested them with IMCE yet.