When the picture box in the orginal text is set to inline, the cross-reference picks it up.
When the picture box is set to hang over the text box edge, the cross-reference omits the picture box...EVEN THOUGH the anchor character is within the text
When the picture box is brought into the cross-reference text, it must carry some sort of character attibute. It's coming from a source where the point size is 35 and the final list has a point size of 10. When the original text box is highlighted, the paragraph style does not indicate any over-rides.
So I'm resorting to selecting the cross reference text and clearing overrides. This necessary step seems to be counter productive if cross references are supposed to be self-aware and autoupdating.