Created attachment 163986 [details]
Example file

Created attachment 163987 [details]
File for do it your self

Created attachment 163988 [details]
Image

Also found in
3.3.0

Telesto, unfortunately nothing has happened with this bug report for more than half year. So I'd like to ask, if it is still valid. Could you please try to reproduce it with the latest version of LibreOffice?
=> NEEDINFO

Still around
Version: 7.2.0.0.alpha0+ (x64) / LibreOffice Community
Build ID: 722ec600e85cca2e94e82e69f8d13773061172b9
CPU threads: 4; OS: Windows 6.3 Build 9600; UI render: Skia/Raster; VCL: win
Locale: nl-NL (nl_NL); UI: nl-NL
Calc: CL

I can confirm it, but only with your image from comment 3

Version: 7.1.1.2 (x64) / LibreOffice Community
Build ID: fe0b08f4af1bacafe4c7ecc87ce55bb426164676
CPU threads: 4; OS: Windows 10.0 Build 19042; UI render: Skia/Raster; VCL: win
Locale: de-DE (de_DE); UI: en-GB
Calc: CL

(In reply to Dieter from comment #7)
> I can confirm it, but only with your image from comment 3
> 
> Version: 7.1.1.2 (x64) / LibreOffice Community
> Build ID: fe0b08f4af1bacafe4c7ecc87ce55bb426164676
> CPU threads: 4; OS: Windows 10.0 Build 19042; UI render: Skia/Raster; VCL:
> win
> Locale: de-DE (de_DE); UI: en-GB
> Calc: CL

Correction:
2. Open the attached file (from scratch)
3. Download the image
4. Place cursor AFTER the marked text
5. Insert image -> Pick the download image

Lets focus the creating of such a document.. so comment 8.. because this is actually an regression

Not in
Versie: 6.3.0.4 (x86)
Build ID: 057fc023c990d676a43019934386b85b21a9ee99
CPU-threads: 4; Besturingssysteem: Windows 6.3; UI-render: GL; VCL: win; 
Locale: nl-NL (nl_NL); UI-taal: nl-NL
Calc: CL

found in
6.4

This seems to have begun at the below commit.
Adding Cc: to Miklos Vajna; Could you possibly take a look at this one?
Thanks
 135aa137d62e6fda825a468302eeeee4b24ff431 is the first bad commit
commit 135aa137d62e6fda825a468302eeeee4b24ff431
Author: Jenkins Build User <tdf@pollux.tdf>
Date:   Wed Nov 20 00:08:03 2019 +0100

    source a7528cd6f17ea5c5b29e7d607e54c62de0d9e7db

https://git.libreoffice.org/core/+/a7528cd6f17ea5c5b29e7d607e54c62de0d9e7db
   sw: insert image: set anchor to at-char by default

I think the above just exposed a pre-existing bug, so this is rather an implementation error. If I revert the above commit on master but go to tools -> options -> writer -> formatting and set the default anchor type to at-char, the same happens.

Inspecting the layout, this is clearly broken: the middle column has multiple text frames, and the first two overlaps. The first text frame top is at 1418 twips, it starts with a fly portion that has a height of 2851, so bottom of the portion is 4269 (and actual text only starts below that). In contrast to this, the 2nd text frame in that middle column already starts at 3074 twips.

So yes, this is a bug, but it was there before as well. Adjusting keywords accordingly.

Attachment 163986 [details] now looks different at fileopen, since 7.6 and e40263b12055cbb95bb64ec6e81d3912152df900 (cherrypick of trunk's 61a78a523a6131ff98b5d846368e5626fe58d99c): no overlap, but quite a bit of text missing.
Overlap is still reproducible when starting with do-it-yourself attachment 163987 [details].

With attachment 163986 [details], I can also reproduce a layout loop, one core stuck at 100%: place cursor before text right after image, press Enter.
OOo 3.3 would crash shortly after doing that.

The problem is still reproducible with the latest LO 25.2 dev master:

Version: 25.2.0.0.alpha0+ (X86_64) / LibreOffice Community
Build ID: 691308125bf53dfde7f1735dc73467d55f6a5966
CPU threads: 12; OS: Linux 6.2; UI render: default; VCL: gtk3
Locale: en-US (en_US.UTF-8); UI: en-US
Calc: CL threaded