Text wrapping around image should honor Corner Options
See this forum thread for details: https://community.adobe.com/t5/indesign/wrapping-text-around-a-graphics-frame-with-corner-options/m-p/11776379
There are two issues - a feature request and what I think is actually a bug (related to the workaround for the lacking feature).
The primary question I asked in the forum feels like a bug to me, but I'm told it should be considered a feature request. So I request that in terms of text wrap, graphics frames generated by placing an image would behave the same as graphics frames created by the frame tool. If an image is placed and then Corner Options are applied, text wrap set to Graphics Frame should respond to the corners instead of staying square.
The bug relates to the workaround suggested on that forum thread. When a graphic (not its frame) is copied and "Paste Into" another frame, text wrap settings of the original frame should not be carried along with the graphic content, because it's not the frame that is being copied, but just the content. That seems like a definite bug to me.
Eugene Tyson commented
I completely agree the corner option should honor the text wrap when a graphic is inside the frame - it appears to be using the Graphic as the text wrap... which is not desirable in this situation.