Before I think about submitting a feature request, I want to make sure I am understanding this behavior correctly. This has come up a handful of times for us...
Teacher has posted a graded discussion, graded quiz with essay question, or graded assignment with online submission-Text Entry. The teacher instructs the students to embed an image into the assignment response. A student trying to complete one of these assignments has exceeded their user account storage quota (they are over 100% for whatever reason). When the student tries to embed the image, they get a cryptic error that does not indicate they have exceeded their quota (I believe it just says "File upload failed"), but that is in fact the cause of the error and they are unable to complete the assignment.
We've always been under the impression that Canvas would never prevent a student from completing a graded assignment due to quotas. If these were file upload or file attachment type activities, this would be true and they would submit just fine, despite the user quota being exceeded.
However, after a recently response from Canvas support, we have learned that the RCE image embed function temporarily stores the image in the user file storage before submitting. Therefor, if they do not have space, it throws an error. We've been able to replicate this behavior.
The release notes from 2020 are a bit confusing, but here they are: https://community.canvaslms.com/t5/Releases/Canvas-Release-Notes-2020-12-19/ta-p/424284#toc-hId--165...
And this was the response from Canvas support: I understand the documentation that you provided said the quota doesn't count when you submit a video or file, but embedding the file still needs enough storage to process it, but it doesn't use the actual storage after that since it's stored as an embed image at that point.
It doesn't count against their quota, but it references their quota in order to process the file. WHY?
In my opinion, this should never be the case on a graded assignment. Not only is this preventing students from completing assignments, the error message does not provide an indication of the problem (that they have exceeded their user quota).
In my opinion, this should be treated more as a bug than a feature request... I agree it makes no sense to say things don't count against the quote after submission, but do count as the submission is being created (since the processing part prevents the submission from ever occurring).
On a very related topic, I've pushed (unsuccessfully) in the past for having all discussion content, whether graded or not, be excluded from the user quote. Discussions are often an integral part of a course, even if the instructor does not mark them as graded (there are a lot of different mechanisms faculty might use to grade a discussion without checking the graded option for the discussion itself). Students inevitably run into their file quote, and then need to go remove old attachments from discussions, when we really want to preserve old courses and all related content in concluded mode.
Thanks for the input, Chris. I'll push the issue with our CSM and see where we can get. May open another case as well.