Indeed, attachments aren't enabled. Use an image/text hosting service like Iota.lt or Pastebin.
Keep in mind this theme was cobbled together from an old phpBB2 theme called smartDark2 which someone (I don't recall who did it first) ported over to phpBB3 several years ago. I then butchered that into what you see today and several phpBB updates later have not helped matters. Nobody can be bothered fix the convoluted mess it is, and it generally 'works'.
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Off hand, I don't know why that menu option is even visible. Probably the result of the old theme.
Keep in mind this theme was cobbled together from an old phpBB2 theme called smartDark2 which someone (I don't recall who did it first) ported over to phpBB3 several years ago. I then butchered that into what you see today and several phpBB updates later have not helped matters. Nobody can be bothered fix the convoluted mess it is, and it generally 'works'.