1) In the document there are two paragraphs one following another and both have border at the bottom.
MS Word calls this paragraphs "conforming" and automatically removes the borders between the conforming paragraphs, but Aspose.Pdf does do that so each paragraph has its own border. This makes the paragraph look like it has two borders in your case.
We cannot fix it at the moment. We might implement support for such "conforming" paragraphs in Aspose.Word later.
2) In our test the images do not get moved onto a new line. Make sure using latest Aspose.Word and Aspose.Pdf.
There is another problem however - the danger label image is shown twice. This is caused by some weird problem in the MS Word file.
There are in fact two images in the Word file. Both pictures can be seen if you turn on tracking changes and select Show Original or Show Original With Markup.
So it looks like there is a tracking change in the document (the image was one size, then was modified while tracking changes were on).
The real problem is that MS Word reports there are NO tracking changes in the document. Accepting or rejecting all tracked changes still keeps two images in the document.
We are not going to attempt to fix this now because it is such a weird behaviour even shown by MS Word.
To workaround, just show original like explained above and delete the second image from the document.