Closing the image picker results in removing paragraph

Using CMS7.9 with the CKEditor

Reproduction Path:
1. a Edit a document with a CKEditor field
1. b If there is not content, add a paragraph worth of text
2. Click on icon to add an image in the CKEditor field somewhere in the paragraph
3. Click the x in the top right of the dialog to close it
Result
Paragraph disappears

Expected result:
Paragraph does not disappear

NOTE, when using the cancel button the paragraph does not disappear.