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This issue has been fixed in 3.9.1

http://ios.wordpress.org/2014/02/12/wordpress-for-ios-3-9-1-released/
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Created approximately 5:58 PM

Update @ 6:02 PM

Upload screen capture and update @ 6:04 PM

Upload image @ 6:06 PM and update

Upload image @ 6:08 PM and update

Repeat @ 6:10 PM

Repeat @ 6:11 PM

Repeat @ 6:12 PM

Repeat @ 6:14 PM

Repeat @ 6:16 PM

Etc.

QED

PS the new link function does not work. I had to manually code the HTML for the above link. Below is what I saw when I clicked the link icon