As above - there are tools for converting images (the IDE has one built in if you try to upload an image to storage).
Since the https://www.espruino.com/ST7735 driver is paletted I'd suggest setting it up with a 4 bit ('mac') palette, and then you can convert all your images to that using the image converter.
Another option is to save the image as a paletted image string, then modify the ST7736 driver to blit the image right out using the image's own palette - that'd be pretty quick but is a lot more advanced.
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