When creating a new email the option to get a picture from file is greyed out.

If I click on options and change the format of the email from html to plain and back to html then the option is no longer greyed out.

I have tried going into preferences and changing the default format from html to plain and then saving it and then changing it back, but the option is still greyed out until I do the switching in the new email that is opened up.

Any idea where I can go to get the new email to recognize that it is already in html format when it opens?

Thank you