The Administrator role has no problem with this, but a lesser role (Editor) that I created cannot upload an image in the basic html text box. They ARE ABLE to upload images as files and images, however. What is the permission setting that I am overlooking here? I should mention, this is Drupal 8.
The basic html option does work for uploading in-line images - for the Administrator. Permissions on the in-line folder are correct. Allowing my Editor role to use full html and even restricted HTML does not answer.
Just a further note, Editor can insert an in-line image in source code mode.