So I am using docx template to generate report. So the image tag for the mail merge template looks like {{Image(50px;50px):logo}}. The thing it is doing is, it is cropping the image and not scaling the image to 50px X 50px .
Thanks for your inquiry. We will appreciate it if you please share your template along with sample image here. We will look into it and will guide.
Meanwhile, you can also check the article to set image size of mail merge field.