Issue using JPEGs in timeline

Hey all. Hope all is well. New to Davinci. I was using a jpeg in my timeline. The first attachment is the original jpeg. I was able to render the project out with no issue. I rendered it out to an MP4 and it looked complete fine. I close out of the project and went back in the next day and the jpeg in my timeline now looks distorted (2nd Attachment). Now if I try to add anything or make any adjustments I'm having difficulty working with the project. What can I do or should I be doing to fix this? This is my first post in the forum. If I should be posting this type of question elsewhere in the forum please let me know. Thanks for any help in advance.