Describe the bug
Image In Classic Editor Block is Broken (Gutenberg Version 4.1.1/WordPress 4.9.8)
To Reproduce
Steps to reproduce the behavior:
Video : https://drive.google.com/file/d/1AKG4lm8Otq6uBGJhPgeIbF1QvyAUMARU/view?usp=sharing
Expected behavior
Not broken
Screenshots
Video: https://drive.google.com/file/d/1AKG4lm8Otq6uBGJhPgeIbF1QvyAUMARU/view?usp=sharing
Desktop (please complete the following information):
I was able to recreate this issue.
I added a thumbnail (150x150) image to a Classic block.
After adding, I was able to change alignment, but not the image size. I clicked the edit button, changed the image size to 800x800, and went back to the block. The image was still a thumbnail and the HTML view showed the original 150x150 size.
Screencast: http://cld.wthms.co/YRTMA2
OS: macOC 10.13.6 High Sierra
Browser: Chrome Version 69.0.3497.100
WordPress 4.9.8
Gutenberg 4.1.1
Tested and confirmed using WordPress 4.9.8 and Gutenberg 4.2.0-rc.1 with Firefox 63.0 on macOS 10.13.6, however, I found in my testing that I could make changes to images in the classic block if I made changes twice in a row. Odd! (1m8s)
Thank you for testing and for including a video!
Aha! @jesscgs I didn't see your reply before I posted mine. 馃檪
Note: the problem where an image is always added at the top when using the "Insert Media" button in the classic block is being tracked at https://github.com/WordPress/gutenberg/issues/10509.
The first issue (image that should be below, but is on top after adding) was described in #10509
but this ticket was hastily closed (why one day later, after the issue has been confirmed here a second time?)
The second issue (resizing image):
Confirmed (I could reproduce it with Gutenberg 4.2.0.-rc.1), does work only after the second time, you have to resize a second time, then it works.
I came here to report the behaviour with image addition at the top, but glad that it's been tracked here https://github.com/WordPress/gutenberg/issues/10509.
but not the image size. I clicked the edit button, changed the image size to 800x800, and went back to the block. The image was still a thumbnail and the HTML view showed the original 150x150 size.
I was able to reproduce this as well. My understanding is that, trying to Preview the image size changes and then publishing/updating the post/page reflects the changes. Trying to publish/update without previewing doesn't reflect the changes - or in this case, one will need to update the image size twice to see the changes.
Closing in favor of #10509.
@mtias There's 2 bug in this issue:
you close this for #10509
Have you create a new issue for # 2?
Nevermind, I create a new issue. Feel free to close if duplicate.
Thanks.
Re-tested and confirmed using WordPress 4.9.8 and Gutenberg53e4c40bd (latest master) with Firefox 63.0.1 on macOS 10.13.6 that I cannot make change to an image in the classic block using the pencil icon in the image toolbar unless I make the same adjustment twice. (1m39s)

I was able to replicate with Gutenberg 4.6.1.
I found that changing the image size of an image added in another editor was inconsistent, until the post was saved in Gutenberg, and then the image size was able to be changed consistently.
Here is my test recording (motorbikes were after post save, see second test in recording with pug to see inconsistency):

I am having this issue as well. I need to change the link twice for it to appear correctly and it's SUPER ANNYOING. Also, every time I change a link the page moves all the way back up to the top so I have to scroll all the way down to continue working. No biggie on a small post, but a long one it's taking me forever. How can I fix this or just turn this new update off.
Opened https://core.trac.wordpress.org/ticket/46085 to track this as it's a bug in the wpeditimage WP plugin for TinyMCE. Probably going to be fixed in WP 5.1.
Lets move any further discussion/bug reports there :)