Basic steps to reproduce the problem:
1. Apply Morph Cut effect between two clips
2. Select effect in timeline and render via Sequence -> Render Sequence -> Render Selection
3. Play timeline and view the bug in the Program window.
Expected Result:
Rendered effect plays back within Premiere with smoothness depending on complexity and movement within the shots being joined by the effect
Actual Result:
Stretched out frame like this when played back within Premiere (the screenshots below are one frame before the effect, and then the first frame of the effect):


Adobe Premiere Beta Version 26.0.0 Build 50
Windows 11
Intel i9-9900K
Quadro P4000 (driver: 581.42)