What theducks said is the answer.
Quote:
Originally Posted by shotsfromthebar
... I'm inserting images into the code via Calibre's code editor "add image" button, pretty straightforward stuff, ...
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The Add Image service in calibre' Editor does not police the placement of the resulting <img> tag. If the current cursor position is outside of any Block class elements then the tag will be left "naked" until you take some action to finish the job by wrapping it appropriately (e.g. between <p> & </p>, <div> & </div>, ...).