When using the new image widget that can source its images from a variable. The picture displayed will use the aspect ratio of the widget and not its native aspect ratio. If the widget is 1:1 ratio and the variable being loaded into it is 3:2, it gets stretched or shrunk to fit the whole 1:1 widget. This is different from utilizing the variable widget, where it will auto fit the bounding box and keep its native aspect ratio.
The benefit of using the image widget is the triggers that can be set up with it. The other route requires an invisible button overlayed onto the variable widget which can get messy and hard to manage with lack of being able to set layers well.
Thank you for reporting this.
I’ve made a bug ticket to fix it.