Images not visible while editing posts after updating to WordPress 7
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Hi,
After updating to WordPress 7, I noticed an issue when uploading images to a new post.
When I create a new post and upload an image, the image does not appear in the editor. Instead, I just see the image name where the image should be.

However, if I save the post as a draft, leave the editor, and then open the draft again, the image is visible. The same happens if I publish the post: the images are displayed correctly after publishing.
So the images seem to be uploaded correctly, but they are not displayed while I am actively editing the post.
Has anyone experienced this after updating to WordPress 7? Could this be related to a JavaScript, editor, caching, or plugin compatibility issue?
Any ideas on what could be causing this would be greatly appreciated.
Thanks!
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