Text app question

I just started using NC18.0.1 and I’m wondering whether what I observe is the way it should be…
From the files view I hit the (+) button and create a new text document, type some text and then insert an image, choosing the Birdie.jpg, that came with NC.
This is how it looks like then (screenshot):
However, when I look at the screenshot, shown in the app catalog for “Text”, the embedded image shows up much nicer:
Am I doing anything wrong? I had expected that the Birdie.jpg would show up as crisp as the image shown in the app catalog - not as some sort of a placeholder.
Not having found any sort of “howto” for the Text app, I’m puzzled that such a simple interaction doesn’t really result in something expected.
Any ideas?
(using FF on RHEL 7.7)