Hello, Thank you for posting this issue on community forum.
You can't insert images in line with text in Loop right now. No matter how you add them—slash command, drag and drop, or the insert menu as they’ll always appear on a new line. Best workaround is to use emojis or hyperlink the text if you want something that flows inside a sentence. If you're checking for any updates or formatting tricks, this page helps. Let me know if you’re trying to pull off something specific. I might have a workaround that fits.Hope this helps!Sincerely,Walter White | Microsoft Community Moderator