For pasting images from clipboard you can install and use vscode-paste-image. Thanks to VSCode Marketplace and the author of vscode-paste-image 💙.
Example of settings.json for embedding images using ![[2020-08-12-20-11-46.png]] format and saving them in Attachments folder automatically:
{
"pasteImage.insertPattern": "![[${imageFileName}]]",
"pasteImage.path": "${projectRoot}/Attachments"
}After configuring vscode-paste-image extension, just copy some image and execute Paste image from the command palette and you are good to go 👍. You can create a shortcut for this command as well!