Trouble with call out picture shapes

This one has me completely baffled. Take a look at my timeline. I inserted a rectangular callout above it, and you can see that it is not a callout, it is a picture.

The baffling part is that when you select it, there is a yellow dot, and once or twice, I was able to move the pointer by very carefully pointing at the very center of the yellow dot. I don't know how, as pictures don't generally have that ability.

In the sample, I deleted it, added a callout, and filled it with the original picture.  I don't know what else to do.

Note that when you hover over a real callout, you get a two or four headed arrow for a cursor, but when you hover over or click the yellow dot, it changes to a regular arrow.