I believe my problem is that the "insert image" button does not show me the file picker, but ratherI get an "Insert/edit image" dialog (picture attached) where the only way to add an image is to reference it's url. I'm trying to find the option for this, but my searches haven't turned up anything just yet.
I'll post when I find it.
Hi Neil. Can you just clarify that you have this problem ONLY with the quiz essay question or you have it with ALL instances on your Moodle where you try to upload an image? I'm asking because the forum thread you linked to is related to adding an image to the front page site description and the tracker is related to not being able to add an image in assignment feedback - so neither is essay questions, but it might be that your image uploading problem is wider than that.