It seems that one of the updates for Media Gallery has caused the [Gallery] tags not working anymore for me. Not sure when it stopped working, as my group seems to go in spurts where we use the embed code, last I noticed it working was November. I have attached a few pictures of what is showing up and what the edit post looks like. I have tried playing with the Gallery Options --> Media Options --> Enable [Gallery] BB Code and nothing seems to work (the code actually looks the same also when i change it and then go to insert an image, of side note I have always used the extended option).
Media Gallery 1.1.4
Resource Manager 1.2.2