ShalenaWhite

@tuanphan worked for me! Thanks!

URL: https://www.shalenawhite.com

@annakatjordan, @PracticalPorpoise said how to fix it in their post above, and it applies to 7.0

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Found a fix to this problem in another thread and thought it might be helpful to post it here:

To fix this mess that Squarespace has created with their asinine default settings, do the following:

Menu > Design > Section Themes

Select the theme of the section where your images are displaying incorrectly.  You'll have to do this for all offending sections. 

Click on the offending image, which selects it's widget type in the styles options list.  Choose 'image overlay' and move the white circle in the bottom ribbon all the way to the left.  This will then display transparency correctly.  

thank you! the combined knowledge here helped me fix the problem.