The work-around I found today is pretty easy and effectively solves my problem, so I am sharing it here with you all. I am using OneNote 2016 now, by the way, but this has been a limitation for a long time, so this problem applies to older versions just the same. OneNote doesn’t explicitly support this feature though, as is evidenced by the lack of a “Format” menu ribbon when you select an image in OneNote.
For the longest time, I’ve wanted to be able to paste an image into my notes and then have a border drawn around the image’s edges, like I do in Word or Outlook emails.
I use Microsoft OneNote all day, every day, for all of my note taking, both at work and at home.