According to our Confluence Editing Improvements article, we should be able to "Annotate images by adding text, inserting shapes and lines, using brushes, or adding a blur to a certain area" by clicking on a button below the image, but that button is currently only available on the file picker. This button will also provide the ability to add a border or shadow to the image.
- Attach an image to the page
- Click on it
There was supposed to be an "Annotations" button/ icon.
There's no annotation button.
For new images, it's possible to use the File and Images button, hover the image and the button will be shown on the image.