If I put an asset into the asset panel they get squished out of shape. They maintain that shape when dragging them back out.
Hardware acceleration is turned off. I'm on version 1.10.3 (just updated to it today actually, hadn't seen this with the previous version)
I am on Monterey, so not sure if that could be related to the bug either. Otherwise I'm just on a 2019 MBP 16".
I can provide a file if needed but here's a video capture of exactly what it's doing.
Screen Recording 2021-10-27 at 1.17.09 PM.mov