Pasted image hides behind text even when set to be inline

Since the image is inline the problem might be that the paragraph line spacing is set to "Exactly". When this happens the image is cut off to fit inside the paragraph.

You can check if exact line spacing is used by looking under paragraph properties. To do this right click the paragraph the image belongs to and choose Paragraph. If Line Spacing is set to Exactly then change it to something else, for example Auto.

After searching "high & Low" for a solution to the very same problem which I was facing, I finally found the solution to this problem.

As you are aware, the default "Inline with Text" option treats the Image just like a text character. So when you paste an image from MS Paint or Insert it from a folder, the image will get positioned at the last cursor point. This means, there is a 50-50 chance that the image may or may not adapt the properties set for the previous text.

So when you encounter this problem, I suggest you don't go and experiment with other Layout and Position options. What you need to do is, keep the image as the default "Inline with Text", Next GO TO Home Tab, and under the Paragraph Section, Choose the Line Spacing Option and under the dropdown, Select 1.0.

This will make the Image reappear just below the text, just the way you need it!