Issue Summary

Pasting an image in the Description field on issue create screen results in an attached rather than an inline or embedded image in the Description field. This only occurs on team-managed projects.

Steps to Reproduce

1. In a team-managed project, create a new issue
2. On the pop-up (the issue create screen) paste an image in the Description field. Observe that it does not appear inline but, rather, only in an attachment.
3. Click Create and view the now-created issue. As before, the image does not appear inline but, rather, only in an attachment. 
4. To compare to expected behaviour, on the now-created issue paste an image again into the Description field. Observe that it does appear inline.

Expected Results

Pasting an image into the Description field should result in its being embedded in that field, even on the Create screen. This is what happens after the issue has been created.

Actual Results

In team-managed projects, pasting an image in the Description field on the issue create screen results in an attached rather than an inline or embedded image in the Description field. 

This video shows how the behaviour only changes after the issue is created - the image pasted does appear inline/embedded in the Description.

2022-10-31_17-49-44.mp4

Workaround

Past the image into the Description field only after it has been created (i.e. after you have clicked the "Create" button, and gone to the newly-created issue)