Alpha Glow cut off around portions of transparent PNG

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See the screenshot and note how the glow around the PIX is weirdly boxed in - can anyone explain what's happening, and how to fix it?

I thought this had to do with the canvas size of the image, so I made it considerably bigger. No change. This has happened to me repeatedly so I'd be grateful to know how to avoid it in the future.

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weird-fishes

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Not sure if this is the only or best way to fix that but if you drag the png onto your timeline and turn it into a nested sequence and then apply the effect to the nested sequence it won't crop it like that. you can still edit the nested clip source after doing this.

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