The Image Element is doing some weird stuff with its transform gizmo/widget when its a child of a rectangle?
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cc @carolhmj
Hey there @Pryme8 ! Do you have a snippet with this issue you can share with us? 
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Ooooh, I know what it might be, I noticed that some elements’ gizmos were behaving strangely with padding, but hadn’t dug deep into it yet. Thanks for the report, I’m going to put this on the top of my list.