Suggestion, if you do a lot of picture insertions:
In recent Word versions, if you pick "View" off the top toolbar in Word, select "Toolbars" from the dropdown, and put a check mark at the "Picture" toolbar, the "Picture" toolbar should appear whenever you (single) click on a picture and should disappear when your select/insert point is anywhere else. It normally appears floating out in the middle, but if you drag it up to the top bar it should stay there.
I dislike having to double-click anything while I'm in an Office (or Office-like) program, since it usually sends you to some gimmick utility that Mickey thinks is marvelous - and which often destroys what you had nicely set up. (Equation editor is a real p.i.a. - I remove it entirely.)
The "paint bucket" near the right end of the picture toolbar is the "format picture" and gives you access to all of the picture functions, with tabs for individual adjustments. The other icons on that toolbar mostly go to individual tabs of the popup you get with the paint bucket.
Perhaps someday I'll go back and try to figure out what they're babbling about in Word Help under "Watermark," but for now it's not a high priority. It obviously has nothing to do with the question here - at least that I can see.