In the Help for for InDesign CC 9.2, there is a section on changes to EPUB from 9.0 to 9.2. In it there is a link to a PDF which describes the changes:
Look at page 11 in the PDF for changes to anchored objects. You'll probably have to try the three anchoring styles to see which works for you.
Yes, I already tried following that advice. I think the stuff in blue at the top of p. 14 is to the point.
To recap: with Object Style set to inline (above line is not what we want):
The epub displays as follows:
With the Object Style set to Custom (note that the first line of text flows beneath the image):
The resulting epub page looks like this:
There have been a lot of new features in the last few versions of InDesign, particularly CS6 thru CC 9.0 thru CC 9.2.
I'd approach it in a different way. I think you can use a combination of an Anchored Object (not inline) and a Float Left command in Object Export Options.
I can't see where your anchor is. It looks like it's not in the right spot. I find it easiest to anchor a picture by dragging the little blue square at the upper right to exactly the spot I want it to anchor, in this case, before the first character of the paragraph. (You can then save this into an Object Style to use repetitively, if you're using the same arrangement repeatedly.)
You also want the text to "run around" the picture so you can use the Float Left command in Object Export Options to accomplish that. You can also add a little more space by applying Text Wrap. Here are some illustrations of how my recreation looks:
Note it's not important that the picture actually sit in the text as it would for print. Just put it on the side and drag to anchor (I've turned on View > Extras > Show Text Threads to show the anchoring visually.)
Here's the Float Left command applied to the picture (this can also be saved in an Object Style):
You can use the Story Editor to make sure the anchor is in the right spot:
Here is the resulting EPUB:
Taking the graphic out of the flow of text (i.e. making it an anchored object instead of an inline object) fixed the problem.
I really appreciate you taking the time to respond!
One small thing: I got a fright – still not working properly – until I unchecked the Ignore Object Settings option at the bottom of the graphics tab in the export dialog. Also, the method I used was to put the cursor at the insertion point, and then create an anchored object (Object/Anchored Object/Insert). You can set all the variables there, provided that the Object Style has already been created, and then place the image.
Thanks again for the workaround; I hope Adobe will fix this so that it is more intuitive going forward.