Hi David,
I believe this may be caused due to your personal settings. Go to Settings > My Settings > Account Settings > Webmail tab. You'll see an option for Display Format. Change the dropdown menu from Text to HTML and save.
I tested this on my end, using 13.2, and it worked as expected. When I have HTML chosen, I see the inline images in the email body and as an attachment. When I change it to Text, the image is stripped out of the body and only shown as an attachment. Please test this out and let me know what you find.
Andrea Free
SmarterTools Inc.
877-357-6278
www.smartertools.com