How does "inline" macro work?

I’m trying to create an inline macro similar to the Files & Images macro in Confluence Cloud (using Connect). The inline Files & Images macro allows users to adjust size, set page alignment and text wrapping options:

However, if I create a DynamicContentMacro in Confluence Cloud with Atlassian Connect and set the outputType to inline, I do not get these options:

I only get the edit and delete buttons and no size adjustments. The Confluence Cloud documentation is rather vague about how inline macro works, using unfamiliar terms (like macro-page):

An inline macro is a type of macro that generates content within the text flow of a paragraph or other text element in which the macro appears, such as a status lozenge. To implement an inline macro, follow these general guidelines:

  1. In your macro-page declaration in the add-on descriptor, set the output-type attribute to inline . (Alternatively, if this value is set to block , the macro content will appear on a new line in the page output.)
  2. If the output content should occupy a certain width and height, set those values as the width and height attributes for the element.
  3. To prevent the macro output from being automatically resized, set the data-options attribute in the script tag for all.js to " resize:false ". This turns off automatic resizing of the iframe.
  4. If the size of the macro output content size is dynamic, call AP.resize(w,h) immediately after the DOM of your iframe is loaded.

Has anyone ever successfully implemented the inline macro in Confluence Cloud with Atlassian Connect, and if so, can you share your secrets?

EDIT 1: so the macro is to some extend “inline”, but not the type of inline I’m aiming for

EDIT 2: I’m aware of the Macro Property Panel options, but the issue is that I can’t control things like alignment or text wrapping from within my macro, let alone resizing. So even if I were to add buttons to the property panel, I still could not control how the macro works within the context of page rendering.