Esc-m-p to wrap anchored frame

[Nancy Allison]

I'm using Frame 7.1, and Esc-m-p works as advertised to wrap the anchored frame 
around the figure.

However, the setting "Anchoring Position" changes from "Below Current Line" to 
"At insertion Point."

I could live with this, and simply adjust the placement of the text, except 
that in addition to shifting position, the anchored frame now covers some of 
the surrounding text.

None of the Runaround Properties makes any difference to this behavior.

What's going on?

Thanks.