Folders keep forcing my icons into a square resolution

[Ronin Soriano]

I'm replacing my folder icons but every time I do the icons are forced into a square resolution despite it being a different resolution. Here's how the icon is supposed to look like, the icon file is 178.2 x 256 pixelsHere's how the icon appears when I apply it on to the folder. I've also tried changing the resolution into other heights and widths but it all keeps getting skewered into the square shape.

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