I think it is a bug, it seems to do the attachment stuff even if you have that option tunred off. You could see if that's been reported as a bug, but meanwhile you could make a temporary fix by editing file clientscript/ckeplugins/vbimage/dialogs/image.js, and around line 109 where it looks like this:
Code:
doAttachmentFromUrl: function(dialog)
{
var url = dialog.getContentElement('from_url', 'url').getValue();
if (dialog.getContentElement('from_url', 'remote_file').getValue())
{
var postData = {
change it to look like this:
Code:
doAttachmentFromUrl: function(dialog)
{
var url = dialog.getContentElement('from_url', 'url').getValue();
if (false) //dialog.getContentElement('from_url', 'remote_file').getValue())
{
var postData = {
(the only change is that I added the part in red).