Move Inline Image to Another Line in List

I’m using Gutenberg for the first time, and I think I’ve figured out how to insert images into numbered lists. But if the images is on the wrong line, I can’t cut and paste it ( it moves to it’s own section above the list block ) , and I cannot click and drag it to where I want it.

Example list

Here are the steps for procedure X
1. open this screen
2. click this tab
3. Make your settings match the ones in this image
<image showing settings>
4. Click “apply” to save your settings.
5 Click ok on the confirmation screen
<image showing confirmation screen>
6.
…

I tried “inline image” to insert the image, but it aligned way off to the right and doesn’t have it’s own line.

Shift-enter add a blank , un-number line below the list item. That’s great.

But now if I accidentally put the image on the wrong step, I can’t move it. I have to delete it and re-insert it on the correct line.

Is there an easier way?