This error indicates that the certificate used to verify a binary with the imgverify command is not a signing certificate. A certificate used for code-signing must include the digitalSignature key usage.
Things to try:
codesign.crt: $ openssl x509 -in codesign.crt -noout -text
...
X509v3 extensions:
X509v3 Key Usage:
Digital Signature
X509v3 Extended Key Usage:
Code Signing
...
keyUsage=digitalSignature extendedKeyUsage=codeSigning
A certificate used for code-signing must also include the codeSigning extended key usage.