Could you tell me which browser is having this issue? I am asking this, because the resize handles for an image in an editable iframe are a browser feature we cannot control, and not all browsers offer it. As far as I can see, this seems to be IE's resize handles, and this would be a behavior of the browser. You can reproduce this with the simple editable iframe that I attached and with the following HTML:
I was not able to reproduce a problem in Firefox (that being the other browser that offers images resizing OOB in its rich text editing engine) and with Chrome, where we have implemented our own image resizing.
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