I am trying to insert an image in the RTE plugin dialog but the image options is disabled, can anyone tell me how can I enable that ?
First thing as Scott suggested, RTE for text editor. you should use different component for image.
or you can have RTE and then give parsys. so that image component can be added there.
see how we have used parsys here:
however previously in classic UI it was there. if you still want to use it.
please use below property in you RTE component.
To place an image into an AEM web page, best practice is to use the Core Image component. RTE is for text, not images.
For RTE plug-ins and understand them - see this document: Configuring Experience Manager Rich Text Editor Plugins in a Touch UI Component Dialog .