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Understanding Move but don't size with cells

If you insert a picture or shape, then adjust the width of the cells behind that picture, it can get distorted if you select "Move and size with cells."

But what is the difference between:

1. Move but don't size with cells
2. Don't move or size with cells

Also, when I click the expand triangle next to the Text Box section, the entire section is grayed out. Why is this?
 
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