Hi,
I was using mono font as my default font but it appears to have issues with
right side inline images.

Here is a Minimal Working Example:

ConTeXt  ver: 2023.09.26 18:19 LMTX

\setupbodyfont[mono]

\starttext

Image on the right side gets issues.
\placefigure[right]{}{\externalfigure[dummy]}
\input tufte \\

Image on the left side is fine.
\placefigure[left]{}{\externalfigure[dummy]}
\input tufte

\stoptext