Non-square contact pictures are displayed in a distorted way in the phone app

Summary

Issue with displaying contact pictures in the phone app.

When using rectangular (non-square) pictures for contacts, they are displayed correctly with correct proportions in the contact app and other apps. One exception is the phone app:

• If the original pictures are rectangular but non-square, they are displayed in a distorted way in the phone app (when the other person is calling for instance)

What is the expected correct behavior?

No matter if the picture is rectangular, square or a circle, pictures should displayed in the same way anywhere throughtout the system.