The Premiere version 26.3 is causing issues with scale and position when exporting and rendering videos

Just tested with the new Beta version 27.0 and it looks like the issue is resolved. I’ll keep editing on that to see if I encounter any new issues but this looks promising.

Quick update from me. I’ve seen the same problem with every version up until this current version 26.5.2. Annoyingly that means I’m stuck on 26.2.2 until I find a solution. Not a good look. I tested this with png and jpg files. they both cause the same issue.

I just want to add here that this a serious oversight which makes me question wether I should keep using Premiere going forward. iPhones are everywhere, and for a version to be released where such a simple transformation is so buggy is ridiculous. I teach Premiere in an intro class to undergraduates, most of whom use iPhones, and am dreading having to work around this later this semester. 

Anyway, for those who are still stuck with such a basic problem, I found that the 2027 Beta fixed the issue.

Same issue with preview window and export preview with a few occasions it actual exports that way. I have this happen with both images and video. Videos I am provided in mp4 i have even tried to convert to an alternate format. Images jpg format even after I have taken ones potentially from iPhone and converted them in photoshop it still occurs. This is an issue I have brough up before along with a green screen in the export preview monitor. There has been issues since the crop was moved into the motion of the object and the crop was made a legacy effect. Ever since then I have had issues and had to create work arounds on too many occasions. The crop in the motion layer doesn't allow any effects to be used on the object. This includes videos and images of varying formats. If I have a vertical video or image and try to put it over a blurred background and i have to crop in any capacity the drop shadow doesn't work and the image or video no longer moves in a uniform direction. Something is broken since you changed the motion and effects with crop and blur and masks. I am now using 26.5.0 version and still having the same issues. 

Processor    Intel(R) Core(TM) i9-14900K (3.19 GHz)
Installed RAM    128 GB (128 GB usable)

Graphics card     NVIDIA GeForce RTX 4070 Ti SUPER(16GB)

System type    64-bit operating system, x64-based processor

The problem is not playback. The problem is export. It plays back just fine. It’s only on H264 export does it show up. 

A workaround until Adobe fixes this: Set your layer to “Scale to frame size.” 

Right click on the layer in your timeline and select “Scale to frame size.” 

Now you’ll be able to play back in quarter resolution. 👊

I am experiencing the same issue with rotating a 9x16 vertical video and placing it in a 16x9 1080 sequence. It appears fine in the program monitor ( set to full and fit). It appears fine in the encoder window. But on H264 export it appears incorrectly. I tried nesting it and that did not fix it. 
premiere 26.3.2

Tahoe 26.6.2

Premiere 26.3.2 Build 2 on Mac Studio; 64 GB RAM; OS 26.6.2.

I can reproduce this with vertical video placed in a 1920×1080 horizontal sequence. I duplicate the vertical clip onto a lower video track, enlarge the duplicate using Motion > Scale, and apply a blur to create a full-frame background.

Everything looks correct in the Program Monitor, and Render In to Out also looks correct in Premiere. However, the H.264 export loses/mis-scales the enlarged background, leaving black around the foreground vertical clip. I had six instances of this in one sequence.

Workaround confirmed: Reset Motion Scale and enlarge the background using the Transform effect > Scale instead. All six shots then export correctly.

Expected: Export matches the Program Monitor/rendered preview.
Actual: Motion-scaled background is incorrectly rendered on export.

I'm experiencing the same issue in Premiere Pro 26.3.2 (Build 2) on Windows 11.

System:

• Premiere Pro 26.3.2 (Build 2)
• Windows 11 Home 10.0.26200 Build 26200
• NVIDIA GeForce GTX 1660 Ti
• NVIDIA Studio Driver 616.56

Issue:
I'm editing vertical video recorded on a Samsung Galaxy S24 in a 3840×2160 (16:9) landscape sequence.

With a vertical clip at its default 100% Scale, playback is normal. Increasing Motion > Scale to just 101% causes severe digital/green/cyan block corruption in the Program Monitor when the monitor is set to 1/4 playback resolution.

This occurs with all vertical clips I have tested, whereas horizontal footage does not exhibit the problem.

Changing the Program Monitor playback resolution from 1/4 to Full eliminates the corruption in the Program Monitor, but unfortunately does not resolve the problem in the exported video. The same corruption is present in the final exported file.

I also disabled H.264/HEVC hardware accelerated decoding, restarted Premiere, and retested. The problem remains unchanged.

I have also updated Premiere/Creative Cloud, updated the NVIDIA Studio driver to 616.56, and restarted the PC.

Expected behaviour: Vertical footage scaled above 100% should preview and export correctly.

Actual behaviour: Scaling vertical footage above 100% produces GPU-like visual corruption, which is also present in the exported output.

This makes the issue particularly serious because the corruption can appear in the final rendered/exported video even when the Program Monitor appears correct at Full resolution.