Hi Linda, it's Susan, your friendly neighborhood moodle help person down in ETRC. I suspect these changes you are seeing are due to the fact that we have recently activated the multimedia plug-ins.
I didn't anticipate Moodle would break any existing embed code though... perhaps someone else can comment on this.
If you do edit, in the interim, you should simply be able to insert the file now without the embed code.
BTW ... we are running version 1.9.8