Copying content to Gutenberg results in inline images instead of Image blocks

[mapk]

Describe the bug
Reported: https://wordpress.org/support/topic/images-and-wp5-4/

While trying to copy content (text and images) from the frontend of one site into the block editor, images get included in Paragraph blocks as inline images. There's no easy way to pull these out into their own blocks.

I also don't see these images get added to the Media Library. This also happened when copying from Google docs into the editor. Is this normal for an image not to be added to the library when copying into the editor?

To reproduce
Steps to reproduce the behavior:

1. Go to https://myfigurecollection.net/blog/44841 and copy the content.
2. Paste into the block editor.
3. Notice the images are inline images within a Paragraph block.
4. Also notice that the images don't get uploaded to the Media Library.

Expected behavior
I expected images to get pasted into an Image block and not as inline images. I also expected to see the image uploaded to my Media Library if it's in my content. My expectation of the latter may not align with the reasoning this happens.

Screenshots
https://imgur.com/Cqu2Zy0

[tharglet]

Original reporter here.

I also don't see these images get added to the Media Library.
For this, it was not the case in previous versions. Personally, I'm not fussed over the images going into the library, as they're hosted on an image hosting site.

The main issue for me is the image config options are not visible when the image is fully inline - if I want to configure if the link opens in a new tab (this option is also not available on the sidebar). Weirdly the controls DO appear if the image is at the top of the paragraph block, but not in the middle. I think there might be some popover clash going on with the image opts and the width one that seemingly appears instead.

[paaljoachim]

This still happens in WordPress 5.7 beta 1, using Twenty Twenty One.
With or without the Gutenberg plugin 9.9.1 activated.

[amberjones]

Still happening in WordPress 6.0.1 with or without Gutenberg plugin Version 13.9.0

[paaljoachim]

Hey. Let's retest and repost here.
Thanks.