I have been using background images in my emails for quite some time, but I have never noticed the issue I am now encountering in Outlook. I'm hoping someone is familiar with it and can offer me some guidance, because I'm flummoxed.

The image displays correctly, however, once you click on it, a box that looks like the image editing box in Word appears around it. You can use the handles/guides as if to resize or rotate the image, but the image position does not actually change.

I revisited an email sent a month ago, and the background image behaves the same way. Is this something that occurs in Outlook that I just never noticed before? If so, are there any fixes?

My code is here: [https://litmus.com/builder/bc51a3b] and below is an image of the issue.

Thanks in advance for any tips.