When I insert a picture, the top and bottom are not showing correctly

Whenever I insert a picture, whether using the insert->picture->from file menu or doing a drag’n’drop, the top and bottom of the image is being cut.
If I pull the picture vertically, eventually I see the complete picture but the ratio isn’t right anymore…
I have tried to go into the options of the picture and tried the different menus / settings but nothing solved it.

I don’t understand this problem, and I have had this problem on my gentoo and my debian distribs.

Any help?

Can you upload / link an example of a test image doing this for others to test? What O/S, LO version, file format are you using?

What is the paragraph style of the line you are pasting the image into? Does it have spacing above/below?