Hey guys,
Long time user of Image Watermark but never encountered major issues. However, recently, I noticed that images are not applying watermarked when they’re added via the block editor (prior to this, i was using Classic Editor and that didn’t have any problems).
Uploading manually into the media library applies the watermark. I suppose there is a bug somewhere.

The first image was uploaded via media library (has watermark). The second image was uploaded inside the block editor by using “upload” (no watermark). The third image was uploaded into the block editor via drag & drag (no watermark).