Image Media Block with Design Option 3

Captivate (12.3.012)

Is there a bug with Image Media block and selecting Design Option 3, where the image is at the bottom and text above? When I change to an image that has a narrow height, you cannot adjust the height of the image source container. Thus, I have a lot of space above and below the image.

The default option is fine and so is the Single Image Design Option (images at the top)

Did I miss something?

Thanks in advance.

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