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There is no dialog box with a choice of image placement. The image is automatically embedded in the document.
How to solve this problem?
Windows 10
Illustrator 23.0.1 (64 bit)
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When you go to File...Place command, do you see a checkbox at the bottom of the dialog box that says "Link"? If so, make sure it is checked.
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When you choose File > Place, the Place dialog that facilitates your file selection should have a "Link" checkbox near the bottom. If not, you may need to reset your preferences.