To reproduce:
- create a document with this HTML: <p>Foo</p><figure class="ve-align-right"><img src="https://upload.wikimedia.org/wikipedia/commons/b/b3/Wikipedia-logo-v2-en.svg" width="100" height="50" alt="Example"><figcaption>caption</figcaption></figure><p>Bar</p>
- Click the image to focus it.
- Hold down the shift key and use the arrow keys to move the caret focus.
Expected result: The selection expands in the direction in which you moved the cursor.
Actual result: Depends on the direction moved. Left/up just moves the caret without expanding the selection. Right/down selects the interior of the focused node.