There might be the need for more css/html to manipulate the image within the container. There are other settings that might be usable (like max-width: 300px;) The image needs definitely no specific size in pixels, but in percentage, which should use a percentage of the container (the div) containing the image. If you explicitly set the width of the div, you need to use the width of the image as well, to set it as percentage. The Height should be left clear to keep the ratio. I sometimes use 99%, or 99.9%, and try it out.
Other ways to manipulate html elements are possible using the script-tag in WEM, but then you need to look online for specific html- and css-settings and things like element-selectors (in this case a div > img could be a selector). But that is generic html/css, not WEM specific.
Also, for testing purposes, try it first on a normal page to see if what you are doing has the effect you hope to achieve (and using the browser's Inspect Element can show you the html-structure and may give some insights into how the element can be manipulated). This is how I try and fix these issues myself. Using a template fragment so you can use it in a normal interaction node as well as in an Email process, so you can "debug" and "browser-inspect" using the browser. If you still cannot get it to work yourself, it might be better to create a support ticket and include the node id so we can actually investigate the issue and do some fiddling ourselves.
Ralph - WEM Xpert since 2011
"I speak to machines with the voice of humanity"
-- Marillion, Man of a thousand faces --