The problem was definitely not there in X3!
I found this thread after noticing the problem independently myself. I just spent a couple hours debugging my own game code to see why it was no longer displaying monster images correctly only to realize it was because I used PSP to crop the transparent borders! Ruined an entire batch of renders which I will have to redo now

. At least I still have the source files... For someone who
creates their art in PSP the damage of this bug can be huge because it is likely to go unnoticed for a long time while still rendering the end result unacceptable and unrepairable.
I consider this bug so severe that Corel ought to recall this product immediately to warn their customers.