I'm not sure why you got that message. Maybe Windows is synchronising your Documents folder to OneDrive - that seems to be the default behaviour in recent Windows 10 editions.
I have no need for per user libraries, so I put my libraries in D:\Calibre\Libraries.
And you can upload images to MR, use the paper clip tool in Advanced mode to access the Manage Attachments page. Uploaded images will appear in the paper clip tool dropdown, if you select them from there they will displayed inline, otherwise they will display at the end of the post. They will be displayed as thumbnails.
BR
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