Why is there no wrap image in text option?

There is no simple way to wrap images in modern html/css, it would need to be done in a different way for every theme that uses a different type of layout (float, flex-box, grid, etc) and would be very dependent on the surrounding content in a post. Because of that there wouldn’t be a way to have what you see in the editor reliably match what is shown on your website.

If you use a HTML card you can add specific markup that works with the theme you are using in the context of the surrounding content.

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