I don't understand why Insert Image doesn't work for you. You said you got the Insert Image window. There shouldn't be a second obscured window like you are getting. When you click Browse you should get the standard Windows file browser where you then navigate to select your picture.
What type of PC are you working from: desktop, laptop, tablet, other?
Anyway, we can certainly look at or download your image from Flickr or SmugMug (I'n not familiar with that one), or Dropbox if you have that.
I have a Dell desktop PC with Windows 10. I have never used the Windows Snipping Tool before. On my first attempt I pasted a black box.
When I uploaded the picture to Flickr it looks better than it did in Photoshop, the blurring of horizontal lines is not gone but it is much less in Flickr than it was in Photoshop. Here is the address of the picture in Flickr:
https://www.flickr.com/photos/billmc6212/41019572475/in/dateposted-public/
Sent from Mail for Windows 10