Thank you for the clarification. Could not examine the control panel options because we have not upgraded to 7.6 specifically because we wanted inline. Looks like it may be time.

Can it be configured on the fly such that an icon in the editor would execute one or more photo uploads and place the inline tags in the post text? That way a user could choose to inline images or to leave them as grouped attachments.

Our users do both depending on the content of the post.