Been a while since I’ve used Word. If I recall correctly, you can hold Alt while dragging an image to make it act correctly. Oddly enough, I think I learned that trick from when I was really into the sims
Pro-tip, at least when I last used Word, hold alt when dragging and dropping images. It somehow fixed the brokenness of the default way of doing it. I think this still works, I just haven’t had to type anything up in like 5-10 years, of the stuff I have, I don’t think I’ve ever had to include an image.