To reproduce...
1. Create a new Page resource
2. In the editor upload an image and display it in the text of the page
3. Try to add the same image a second time (and you might want to do this - say a "help" icon or similar).
3a. If you upload the file again you get - "File exists"
4b. It doesn't show up anywhere else (recent files / Private files etc.) in the file picker.