As one person mentioned already, you can paste images into the text editor on modern pages and we’ll upload the image for you.
Is this strictly asking for that capability in lists with multi line text box (MLTB)?
An error occurred while saving the commentminoo malik commented
It is no brainer to allow users to just copy and paste image within that box with text wrap options. Even inserting image with URL within Rich text box doesn't display. I'm not user if Microsoft has done usability studies because user experience with modern SharePoint lists is terrible.