Uploading and placing an image with file browser renders styles useless

Steps to reproduce:

1. 1. Enable image upload in the CKeditor of any text format.
2. 2. Add styles to the toolbar as well.
3. 3. Add a .img style. For example: 'img.test|Test'.
4. 4. Create a node using the edited text format.
5. 5. Insert an image via the image upload within CKeditor.
6. 6. Try to apply the 'Test' image style created in step 3.

What was I expecting?

I expected that I could apply the image style to the image.

What happened instead?

I cannot apply the image style to the image.

I think it has to do with the 'data-entity-type="file"' which is added to the img tag. When I go into source and I remove 'data-entity-type="file"' I am able to use the image style.