How to insert an image to be treated as a letter

When I enter text into a cell, I don’t have to do anything for it to stretch if the font is large enough, and when I enter text at the beginning of the cell, what was there just shift to the right. How come when I insert image it’s treated differently? And how can it be treated as a letter? Because right now it doesn’t stretch the cell and inserting text at the beginning just have the beginning of the text hidden by the image.

Update 1

If I use Optimal height on the row, it doesn’t stretch, it’s as if the image wasn’t in the cell, but I made sure I was on the right cell before inserting it.