In short there's nothing you can do in Fresco to set up how a file is imported.
Is it happening to all files or is it somewhat random? Are you using Windows 10 or 11?
I am also able to recreate this issue. For me most images work correctly. The one which doesn't work, is the same file each time. Another interesting result if I resize the ones which place correctly everything is okay. If I try to resize the one placed sideways and distorted I end up getting told that the file is too large.
This leads me to believe it is part of the file size restrictions. So I am wondering if editing the file prior to importing into Fresco will solve this flipping and distorting issue. Admittedly this doesn't clearly explain why your image is appearing upside down.