Greetings Stephen,
I hope you are doing well!
My sincerest apologies for the inconvenience this might be causing you. If you are facing same behavior in Outlook on Web (https://outlook.office.com) Kindly note that there is an incident with ID EX723521 which might be related to this behavior.
Title: Some users are unable to paste images into the body of emails in Outlook on the web
User impact: Users are unable to paste images into the body of emails in Outlook on the web.
Current status: We're attempting to reproduce the issue in our internal environments for analysis and are reaching out to affected users to gather additional information, including network traces, error and exception logs which will be used to refine our understanding of the impact scenario, in order to determine our next troubleshooting steps. As a workaround kindly try to use Ctrl+V
Scope of impact: Your organization is affected by this event, and some users attempting to paste images into the main body of emails are impacted.
For affected customers to easily identify the information here, you may subscribe to this thread or refer to SHD for updated information. I will also post back here once the issue is resolved on SHD. Thank you so much for your precious time. Stay safe and healthy. Have a nice day!
Best regards,
Inema |Community Moderator