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Can someone explain why is this happening? I try to create square but instead it is creating rectangle every time? Thanks in advance.
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You are using non-square pixels to create your solid. Set the Pixel Aspect Ratio to square pixels (1:1)
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As Andrew says, it's your Comp settings, I can see 8n the screenshot the aspect ratio is set to 1:1.5. Go to Composition ... Composition Settings to change it.