This is not a glaring flaw in Word which is a word processing program, not a page layout program. It may well be something you and others might like to see. I suspect it would involve a major rewrite and cause loss of word processing functions that many value.

The problem lies in using a converted/scanned file as the basis for a Word document. Such conversions are usually quite good at producing something in a Word file that looks like the original. However, it is not a document structured the way it would be produced in Word. Such a document is more often than not a nightmare to edit.

Generally, if I need to make more than minor revisions to such a document I end up recreating it, often using text from the conversion without any formatting.

You might try cropping the original pdf. Then print to pdf scaling it, then converting to Word if needed.