Having problems with image type column in sharepoint

Hi Shweta,

Just checked on my lab environment, this does not happen on my tenant.

Could you please check if this issue is specific to the list in question? If so, how is the list created? Check the behavior on a different site.

It'll help you scope the issue. If the issue is with all the sites (check behavior on existing vs new lists). If you feel this is a bug, check with MSFT support. I don't believe this is an expected behavior, but a bug.