First rule is always: do what you want and that which comes naturally to you
That said, when posting and viewing from instances > v4.2.0:
#Inline #Hashtags stay in the body text
Hashtags *after* the body text (separated by a newline) appear in a line of three with "And more..."
Hashtags separated from the body text with an embedded image seem to appear with the line of three "And more..." *below* the embedded image
I think...