Layers are not working for image from Smart Picker

First time using Whiteboard app, I wanted to make some notes over image, unfortunately integrated Insert image have huge compression (huge image 1800x8000px 5MB,…) and image is utterly unusable, so I tried to add image using “The Smart Picker”. Image is good, but I can not bring any other object (lines, text,…) over this image to make notes.

In screen you can even see clicked “Bring to front” icon over line.

Any ideas how to deal whit this? Can you confirm it’s bug?

Using Docker Nextcloud AIO v10.11.0