Lots of changes in how we do things since the update of WordPress to it’s new Visual Content Editor, Gutenberg. Things that we have done for many years are now done differently. Adding an image within a paragraph is one of those things.
So, let’s see if we can make that happen to this paragraph block. Yes, it is called a block. Why? Because they (the WordPress Gods) want you to be able to move each block around easier than before.