The "Make Dynamic" button does not appear in the drop down gear menu when an image is clicked in the email editor.
1.Click the image in the editor
2.Click the image in the editor a second time
3.Click the gear Menu next to the image
4.In the menu "Make Dynamic" Should appear.
This is occurring because the image is located inside of another element such as a <div> which is being used as a module. The first time the image is clicked, the module is being selected, so the Make dynamic option does not appear. The second time the image is clicked, the image within the module is selected so the Make dynamic option can be selected.