In confluence server, this works just fine in edit mode, and in view mode.
Perhaps, in confluence cloud, this is a little bit different. Can you share a printscreen?
Make sure, that you click on the picture and allign the picture to center. Don't just select all and center it, try to center the image explicitly.
I hope this helps a little bit.
I had a look in the code and the image does get class "image-center" but it doesn't do anything because its parent SPAN is inline and only gets width of the image, and then its parent P is not centered
You can see it here. the first P is text and has centering. Second is the image
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