How to add photos to the Notes app?

I have an iPad Mini, Model A1454, Wi-Fi & Cellular. I have iOS 8.3 on the device. I just created a new Note, tapped on the screen and the menu came up that states Select, Select All, Paste, Insert Photo. So, your iPad, 4th Gen, is newer than mine and I can do it. As far as your comment "select and area of text/space" are you trying to do something in particular there. All I did was tap on the screen to bring it up.

What is really strange, there is no Paste either. What troubleshooting have you tried? User steps are restart, reset, restore from backup, restore as new. Power the iPad off/on (restart), then if that doesn't work, then hold the sleep/wake and home buttons together until you see the Apple logo and then release. The iPad will reboot. (reset). Also, go into Settings>General>Restrictions. Is Restrictions enabled, or do you have any restrictions turned on?

That's interesting. I have mine synced with Outlook on my home computer, but I also have the option to sync with my college (work) Exchange account. I will check tomorrow to see what might happen if I set it to sync with my work account. It is getting late and I need to get to bed. I'll report back tomorrow.

EDIT: I couldn't stand it, I had to look. I don't have the ability to add Notes to sync with my Exchange account. So that answers that.

Here's what I get on my iPad 4 with IOS 8.3,

You can also copy/paste a photo into Notes.

Yes, Insert Photo works with new notes but doesn't work with old Note files.

Okay, so adding a picture to an existing Note would not work, correct; only to a brand new Note?

That is what I get with mine as well.

Now we have to figure out why the OP can't.

To answer your question I was able to add a photo to an old Note. By adding the photo it pulls the Note out of the time line and makes it a new Note.

Thanks for the solution. I've been turning settings on/off but still no success.