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Hello @stevehale
Thank you for reaching out and I am happy to assist you with this.
Can you please share the screenshot (with W3TC activated/ deactivated) so I can see the difference and make sure I fully understand what you are referring to?
In the meantime, can you please disable the settings one by one in Performance>general settings, save the settings and purge the cache after each setting is disabled and see which one might be causing the issue?
Thanks!
Marko
I have found that the issue is lazy loading. When selected it distorts the images.
Regards
Steve