Placing an image from Library distorts it.

Problem: Placing an item from my Library distorts it when I drag it to the size I want.

I have a bunch of different company logos in my Library. They have worked perfectly for about 5 years now. As of last week, when I place them from the library, they become distorted. 

• If I just Place Copy and click in the image, they are fine, but then it's huge and I have to resize it 
• If I Place Copy and drag to the size I want, that's when it gets distorted.
• I've deleted them and re-added, no luck
• If I use File - Place and locate them on my computer, they work fine...but that defeats the purpose of the library.
• If I go to my library and Right-click -> Edit the logo, it opens fine. And I can select-all copy then paste and it works fine. Again, defeats the purpose.
• I've checked and the GPU is turned off. I've turned it on and off again. I've restarted my computer.

Nothing seems to work to fix the Library - Place Copy when I drag the logo to the desired size. Help.

Windows 10 Pro v 1909

Illustrator 25.2.1

Thanks