In General Options when "Show Fullposts" is set to "No" it removes <p> breaks and does not allow an image to be shown unless added in "Featured Image" even if it is in the <p> that is being shown in the except.
Show Fullposts - yes
<div> <p>many paragraphs (as formatted in wordpress</p> <p></p> <p></p> <p></p> </div>
Show Fullposts - no
<div> <p>one paragraph</p> </div>
any advice on how to fix this so when "Show Fullposts" is set to "No", it will not remove the <p> breaks?