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Organization Logo should be square
For the Logo Schema Markup, Google Recommends a minimum image size of 112x112. And in the search results, it's always displayed square. (So I think it's safe to infer that it's ideal to upload a square image.)
With the recent change to improve the image selection (which is great), it now displays the image in a rectangle - even when the image is square. For example:

The logo file above is actually 120x120 (you can see it here).
We actually recommend to our clients that they use an slightly larger image (at least 300x300, up to 600x600) to help "future proof" this setting. But most importantly, it should be square and at least 112x112 to follow Google's guidelines.
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It would be helpful to add language to let people know what the image size and dimensions should actually be? Something simple like, "Google recommends a square image, at least 112x112 in size."
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Can you please display the image cropped square, so they'll know what it would actually look like when Google uses it?
Thanks!
For the seconds part, perhaps simply changing the CSS in .yoast-image-select__preview to 112px for width and height would be the way to go?

@Djennez Circling back on this... Last year you tagged this as a "feature request" but I think it's actually more important than that. Since Google crops/serves these organization logos square, it's doing a disservice to have people upload a rectangular image. It could be cropped badly in the search results and make their logo look bad, defeating the purpose.

I also just uploaded a new square image (1000x1000) on my site, and the Yoast Settings preview it as a rectangle, which is even more confusing... people would likely think from this display that they should upload a rectangular image, when that's not the case.

@blogtutor thanks for the details! I'll see if @iamazik and @jonoalderson have something to add here, since my attention has shifted away from this repository.
Good suggestions; thanks! I'll write them up and get them on our roadmap!
Ah, better yet, I can see that this is already captured in some planned/upcoming changes. Great stuff!
Excellent! Thanks to you all! 😎
Internal reference: PC-57
I believe this is fixed in the 20.0 release. Thank you!