Our programming team has been trying to work out why the drop cap and image wrap can't be displayed together in PDF versions. When using these two settings together, it suppresses both the text wrap and drop cap as in your photo. We recommend not mixing the drop cap with wrapped images at the moment.
If you want to remove the drop cap just on this page, you can use Shift + Enter before the first line of text to suppress the drop cap, and then add the image.
As another alternative, you might also adjust the location of the image, so it appears with a paragraph that doesn't use drop caps.
We hope this helps!