Issue Summary

Images migrated from the Legacy editor or nested within list items/paragraphs are being incorrectly rendered as inline-media-image extensions instead of standard mediaSingle blocks. This prevents images from being resized, causes them to overflow table cells, and results in low-resolution pixelated previews when opened in a new tab.

Steps to Reproduce

1. Open a Confluence Cloud page that was migrated from the Legacy editor where images were originally nested inside a list item (li) or a paragraph (p).
2. Attempt to resize the image using the editor handles.
3. View the page and attempt to right-click "Open image in new tab."

Expected Results

The image should be treated as a standard block-level mediaSingle node, providing a full image toolbar (alignment, resizing, alt-text) and high-resolution rendering.

Actual Results

The image remains an inlineExtension.

• Resizing handles and the alignment toolbar are missing.
• The image overflows its container (like a table cell) because it is behaving like a text character.
• Opening the image in a new tab displays a highly pixelated, low-quality version.

The below is example in editor ADF format for reference:

{
  "type": "inlineExtension",
  "attrs": {
    "extensionType": "com.atlassian.confluence.migration",
    "extensionKey": "inline-media-image",
    "parameters": {
      "id": "8d1fbb41-e5ba-4e76-834d-d8ac308cb7d7",
      "height": "250"
    }
  }
}

Workaround

Currently there is no known workaround for this behavior. A workaround will be added here when available.