In the blog post admin page, the right column has a "blog image" section where you can upload or choose an image for the blog post.

I am able to upload a video file through this panel, but then I am not able to set it as the blog image. The button to actually insert it is not there.

Is there a way to make this work? I have a customized layout and so embedding the video in the post is not the placement I want. You can see in the screenshot that I have featured posts at the top, and regular posts have the picture in a column to the left.