When I select a picture in the Desktop picture pref pane, the pane shifts its display up about 15% and so crops off the top 15% of its area. This is on a Mac Studio Max running macOS 12.3.1. This does not occur on a late 2015 iMac using the same desktop picture files and also running 12.3.1. See attached example:
Hi there,
You might have better luck asking this question over in Apple Support Communities run by Apple Support.