To set the image size:
<img height="x" width="y" src="https://yourimageurlhere" />
In the WYSWYG editor, images can appear "stretched" or "pulled" because the aspect ratio on the image size is not maintained. Once the Quote Document is generated, however, the document generation service takes the width and then scales the image height according to the original aspect ratio. This way, the original aspect ratio of the image is maintained while still allowing the user to scale up or scale down the image accordingly. More information on referencing an image on a Salesforce CPQ Quote Document can be found here.
For additional information on setting an image size using HTML, visit W3Schools.
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