Though changing a drag-and-drop and drop image from:

to
<img alt="first image" src="attachment:193ed9f1-3892-4fc5-b97a-d7d315b61e53.png" width=500>
Will allow the image to be displayed and resized in the short term. I have found it breaks when exporting to HTML or PDF with nbconvert.
The following seems to work in Jupter Notebook Version: 7.2.1
<div style="max-width:500px;margin-right: auto; margin-right: 0;">

</div>
Both the lack of indentation and the empty line above the ![image.png] line seems to be necessary in my testing.
(this is similar to an answer here but with a refinement. I don't have the rep to comment so I'm posting it here as an answer as I believe this might help other users, and the OP)