Pasting an image in the editor adds extra padding (new lines) before and after the image

Issue Summary

When an image is pasted in the editor while the cursor is in the same line where the text is located, the image is placed below the text and new lines (padding) are added before and after the image, new lines that were not there before the image was pasted.

Environment

New editor

Steps to Reproduce

1. Create/edit a page and add some text to a line
2. Make sure there is no extra new lines below the text that was added
3. Paste an image in the editor (it can be of any size, but smaller images are better to see the issue)

Expected Results

The image is added in the same line as the text

Actual Results

The image is added in a new line below the line of text, and extra padding is added before and after the image.

Workaround

None.