Issue with summernote image upload

I am using summernote with image upload

I have the server action set

which is:

when I save the form with an image inserted :the image is base64 encoded and a separate image is not saved to the server.

image946×611 90.7 KB

I actually need this to be uploaded to an DO S3 space so it has to be a separate file
I am seeing no errors in the dev console nor do i see any evidence of the upload action running - should I expected to see it firing when the image is uploaded?

Any suggestions appreciated