Hi Mary,
I think I may have found a clue. The image(s) you see here are embedded in two different ways. The one that is clipped, is taken from a data repository, in this case OwnCloud. Although I told Moodle to make a copy of the image, and not link it, it seems that for some wierd and wonderful reason that with some images it clips them, others not. I would have to start looking at file types such as JPG or BMP or PNG, for example.
The second image which is as you can see is a complete image, that was uploaded directly from my PC.