Unable to edit embedded media items with basic_html text format. JS error also seen in console.

Experimenting with wysiwyg media embedding with 8.8.0-rc1 and finding that with basic_html, I do not see an edit button for controlling alignment and choosing view modes.

The problem appears to be something in my setup, as a clean install on simplytest.me works as expected. However I have discussed the problem on Slack with someone else having exact same difficulty. @phenaproxima also suggested on Slack that a bug could not be ruled out.

In the console I see a js error as below.

Uncaught TypeError: Cannot read property 'insertBeforeMe' of null
    at h._setUpEditButton (plugin.js?t=q1mipb:242)
    at plugin.js?t=q1mipb:174
    at Object.success (plugin.js?t=q1mipb:320)
    at c (jquery.min.js?v=3.4.1:2)
    at Object.fireWith [as resolveWith] (jquery.min.js?v=3.4.1:2)
    at l (jquery.min.js?v=3.4.1:2)
    at XMLHttpRequest.<anonymous> (jquery.min.js?v=3.4.1:2)

I do have some contrib modules and also some ckedititor plugins at work on my node edit forms, but I have disabled these as well a quite a number of contrib modules, to no effect.

This may be due to a conflict with other filters. Per @catapipper in #11:

I narrowed down the issue. If you have Convert line breaks into HTML (i.e.
and

) enabled for the text format then it throws the error. If it is not enabled the edit button shows up and works just fine. As to why this is conflicting with that particular setting, I couldn't tell you. Although I have checked this with multiple different text formats and several of our platforms and this seemed to be what the issue was for us.