When you drag an image to a Writer document the expected behavior, I would think, would be to copy it to the document. Instead it opens a new file.
Sorry just too thin on details -- as is its Invalid. Please clean it up with details and STR and set back to Unconfirmed. Specific Steps to reproduce? Missing details: OS and release that actually exhibits the issue Desktop environment File manager in use LO Version Dragging an image from where?
Sorry about the thin details. On OS X and when dragging from the Finder. Shown here: http://prescottcomputerguy.com/tmp/lo/drag-image/
This has been fixed in master and should have been backported to 4.4.x *** This bug has been marked as a duplicate of bug 44621 ***