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That dialog is a Dojo dijit/Dialog in the CMS UI, which doesn’t support drag-resize and falls back to scrollbars when content exceeds the viewport.
Some questions
Hello,
Please see my answers below:
Is it possible for this dialog to support drag resize?
Thanks!
Sameena
Drag resize is not supported.
The dialog appears as it should on serveral of my sites

When checking my code the popup have the following cssclasses
epi-dialog-landscape epi-collection-editor--dialog epi-forms-emailTemplate epi-focused dijitDialog dijitDialogFocused dijitFocused
That will give it the following config styles when looking it up in a browser

What happens in your styles dialog?
Hello,
Our CMS users cannot resize the "Create email template" dialog in the CMS within the "Form container" block for Opti Forms. This leads to a poor editing experience, as they have to use the scrollbars to edit the "Message" WYSIYWG. Please see screenshot below:
We are on versions EPiServer.CMS 12.29.1 and EPiServer.Forms.Samples 4.2.0. Can this be fixed in a future version?