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At the moment, you can directly upload images for posts, but not comments. While you can technically include images in comments, you need to already know the URL of the image and manually type out the links.

The dev says built-in uploads for images in comments are coming in the next update: https://lemmy.ca/comment/706452
Its possible to embed pictures and gifs. Scroll through my posts for proof.
Awesome I’ll try that out, thanks for the reply.
It does seem to just be on connect. I was able to submit a post on the browser just fine
The problem is that it’s hidden in the “post Url” section when creating a new post. When u press the arrow uo it opens the android file selector