WordPress 4.0 and images

The custom size editing for images seems to have disappeared. When I click on an image from the editor, nothing happens. I used to get options to click a black box which would launch a window where I could edit the size, etc.

Also, when I tried to change a link to the image, the entire image disappeared. I now have to go into the html to fix this problem. I hope this is going to be resolved as it is a major inconvenience – not at all user friendly as it was before.