P: Squished image height when rescaling Library Linked Vectors

Came across a bug where if I try to rescale a library linked vector smart object, it squishes the image height, even though the bounding box still maintains the original image ratio. To make sure this is clear, the original scale when first positioning the image is fine. Only after I try to Free Transform when making further adjustments.

If I actually place the image from the library, it scales fine.

Thanks!