This problem continuously occurring in forum. Forum admins are working on this. Hope this problem will resolve soon. For the time being, attach your image through the advance section in your reply.
Thanks Prashant. But the problem is happening in the advanced section - the 2nd screenshot above is from advanced section
You're headed down a never ending rabbit hole...
On a more serious note, the Getting Started in the Forums area is typically where folks post Forum-specific issues/problems--while there are lots of little issues, the admins are aware of most of the annoyances and I have to believe they're working to fix them.
Here's a thread that started after a recent community upgrade: Re: Community Upgrade Notes - 4/1/2014
Cheers and thanks for your contributions--keep coming back!
Thanks Prashant - attachment option works but it does not display the image inline - that is why I was not using it. Anyway, I can use it as a workaround till things are fixed. Thanks for your time.
Thanks Matthew for pointing me to the right forum and thanks to the one who moved this thread to the right forum .
Sure, I will use Community canvas to post questions about the forum - again something to be referenced in the getting started guide.