The Web Stories plugin does not add any watermarking to your images. If you require such a solution, I recommend looking for related dedicated WordPress plugins for image watermarking.
Just keep in mind that watermarked images probably don’t look as nice when surfaced in places like search results.
As for Elementor, I think you can use it in combination with the block editor, so you could totally use them together. Alternatively you could use the [web_stories] shortcode to display your latest stories.
@ananddevops As we haven’t received a response, I’ll mark this as resolved. Feel free to open a new support topic if you continue to encounter issues, or reopen this topic and we’d be happy to assist. Thank you!