Sierra Cross-Device Copy Not Working on iPhone

Hi -

Sierra Cross Device Copy/Paste works fine between my Mac and iPad, but not with my iPhone. When I do the paste in Notes or Mail on my iPhone, the screen shows "Image1.pict", and not the copied text. I am using a 16Gb iPhone 6 under iOS10.

Could this be an insufficient storage issue? I have 346.8Mb storage remaining on my iPhone.

Thanks,

Steve