The new versions let you add photos the old way or you can just drag a photo in the message box. It does not show up in the message box but it shows up like an attachment use to. You can use the place inline button to put the picture just where you like in the message.
The attachment menu does not show up by default to get it click the hamburger menu just to the right of options
Then click the attachment link
But remember you may just be able to drag the phot in like I did for all of these
How to add pictures
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