Inserting photos into P2 posts

I’m running P2 theme 1.2.1 with a child theme at https://www.simplechurchipedia.com.

When members go to insert/upload an image (from the front page) they have the option to add/upload a photo from their computer but the option to “insert into post” is not there.

They have to save the photo info and then select it from the media library to insert into the post.

Is this a “feature” of P2? Or is it a funny setting I’ve overlooked?

And either way, how do I fix it so users can simply upload a photo and insert it as a status update, or other post?