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Background images pixelated/distorted while editing

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Has anyone else noticed lately that when placing a background image it is pixelated and distorted and only corrects after you save and exit the page? This never happened previously - just noticed in the last moth or so...see before save and after photos below..

Screenshot 2023-08-31 at 1.34.36 pm.png

Screenshot 2023-08-31 at 1.37.39 pm.png

Edited by Kristina8
add photo
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