The second picture simply shows that the image is selected. I suspect the reading layout issue relates to the level of zoom shown in the reading layout. At 100% zoom the images should be shown where they were placed.

You could fix the size of the images by inserting a fixed width frame with the height set to auto. The image will adapt to the width of the frame. It will save you having to pre-size your images, but will probably make the reading layout display issues worse.

Reading layout does not present an accurate view of the document. It is an aid to reading. If you want accuracy you want the print preview.

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Graham Mayor - MS MVP (Word) (2002-2019)
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