In your album set template you’re using the Iconic layout. The ratio is 3:1, making them a horizontal panoramic. In the Iconic layout, the image covers the area.
Remember, the thumbnail images used in the album set come from the album thumbnails within the set. They have nothing to do with the large image rendition size.
You have your album thumbnails set to a 1:2 ratio, tall verticals. These don’t match the aspect ratio you’ve set in the album set template.
So in the Iconic album set, a 3:1 slice is taken out of the album thumbnails and used in the set.
If you want to use the Iconic layout in your album set, you either need to use thumbnails in the albums that are the same ratio and sized large enough so that they don’t need to be stretched, or you need to create custom thumbnails at the same ratio and sufficiently sized.
In your case, in the album set you could change the thumbnail ratio to 1:2. And the thumbnails created by the album need to be large enough to fill the space in the album set without degrading
The sizing for the thumbnails is insufficient for both the album and the album set. The thumbnails in the album look fuzzy.
Iconic thumbnail sizing has not changed from BL 4 to BL 5. It’s been this way since at least the CE days.
It’s not. Looking at one of the albums, the large images are set to be published at 600x940 and that’s what’s been uploaded. And the large images look just fine. The thumbnails are sized at 70x140. This thumbnail size is what’s being fit into the larger area you’ve created in the albums by the gallery max-width, the thumbnail aspect ratio, and the number of columns.
For example, on an average desktop monitor, with the browser taking up the entire screen, I see six columns of thumbnails in the album. Because the gallery max-width is set so large, these six columns are about 250px wide each and those 70px wide thumbnails are being stretched to fill the space.
Control the thumbnail display size in the albums by changing the album max-width as well as the number of columns