New Outlook: Copying text & images into a blank email often only pastes the text (images disappear)

We've reproduced this on multiple devices with multiple users - it seems to be specific to the New Outlook.

Here's my version as an example:

Microsoft Outlook Version: 1.2026.105.100 
Client Version: 20260116004.02 
WebView2 Version: 144.0.3719.82 (Stable)

The best way to see this is if you go to your sent items, find an email you've sent that has an embedded image (for example, I used my signature which has an image). Drag to select, like this:

Then press CTRL+C to copy, and then try to paste that in a new email. In many cases when I do this, only the text will appear - regardless of my Copy/paste settings in New Outlook, whether I choose to keep source formatting, or not. To copy the images reliably, I need to right-click each image, click "Copy image", then "Paste" manually into a New Outlook new e-mail window.

However, my colleague figured out that if you press Reply All or Forward on the same email, and THEN copy the range of text and images, then... when you try to paste that content into a New Outlook e-mail, the text AND images will be pasted correctly. It's almost like the "read-only" view of an email doesn't load embedded content fully, preventing the copy from actually copying images.

Try it out. It doesn't always appear to be an issue. I've encountered this more often when trying to copy my own signature - but it also happens in other cases when the embedded image is in the body. In all cases I've seen, it's been with JPGs.