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If I grab a corner handle on an image inserted into the latest version of web builder, I get a resized image which maintains the aspect ratio - which is what I want. But if I rotate the image, non of the handles maintain the aspect ratio. Is this a bug? Appreciate help on this.

When the image is rotated, then the resize handles no longer maintain the aspect ratio because the image is transformed.
This is behavior by design

Also, note that this has always been this way, not related to the latest version.