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How can I make a square image fit into a round / circle image so that the main image is not cropped?
You have to warp the image. It's (warping an image like this) is only available in PSE 2022.
For your square image of x pixels sides, do the command:
Image >> resize >> canvas size and choose 141,4 %
A square is included in a circle diameter of
(x * square root (2))