This is much more common on sideloaded books rather than purchased books but does happen from time to time.
The problem is that the original image was incorrectly sized. Even using calibre one can insert an image that looks correct but doesn't display properly in the NC's library.
As you found, downloading another image fixed the problem. Good thing you are savvy enough to have figured that out; many users would simply have to live with the cut-off image!
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