I am sorry to hear of the frustrations. Are you dragging and dropping from the left panel of your email window? If so, when you hover over the image on the left you should see a 4 way arrow that indicates you can click and drag.
Once you have dragged into your block just release your mouse and then image will appear or will show as a loading icon if it needs to load first. Can you try this mehod and let us know how it works?