Inline attachments are not being inserted at the cursor

The version is actually 3.0.7 but I can't select 3.0.7 from the drop down.

Anyway, let's say I do some typing in the posting entry screen. I then upload an image to insert into the post. I upload the image but when I hit the enter key a few times (moving the cursor down in the posting screen) then click on "Place in-line" the file will be placed directly after the last entry instead of where the cursor is positioned...I get the same effect on here.

Minor really but annoying none the less.