Until this issue gets fixed, I suggest using a photo uploading site like Postimage for resizing.

Within the brackets, next to 

img src = "filename.jpg"

add

width = "xxx" height = "yyy"

(keep the quotation marks; xxx and yyy are numbers as the size you want, in pixels)

Now, just like the drag-to-resize function, this only changes the size the image is shown. If you are uploading a picture taken at 30 megapixels or other high resolution picture, and you want to show it by this method at something like 800 x 600 pixels, it is still the same huge file. So it might be better to do a true resize in your local software anyway.