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You should upgrade or use an alternative browser. This should be a very basic and easy thing to do, and it used to be...up until Ventura! Insert an image in mail body, select it, cmd-K, paste the link, done!
But now, it seems it's not possible anymore. At my work this is crucial to be able to do that for various reasons, one of them being using dropbox links to share content via email. And YES, I do need the ability to use a custom image. And these days the "solution" for me is to use an old iMac sitting around with Catalina still running on it so I can do this otherwise simplistic task!! It's driving me nuts that the modern version of Mail from 3 OS generations has lost this "feature"! Even more surprising is that up until recently Outlook could still do that but not anymore with, I guess, the last update! I have tried other current Mail clients, such as Thunderbird, Spark and a few others, even tried directly in Google, nope, nothing!
So I wonder WHY we lost this convenient way to add links to images, but more importantly I'd like to know if there is actually a solution or some obscure hidden setting I'm not aware of...