Sunshine rendering in corner on mouse input

I'm getting some weird visual distortions when I try to Moonlight into my Bazzite set up, where the screen will suddenly shrink to the top left corner of the screen. The stream will start normally but as soon as there's any keyboard or controller input (from either the host or client), the image will suddenly shrink as shown. If there is any mouse input (either from host or client), the image returns to normal. Other than this alternation, there is nothing else wrong. This only seems to occur when I'm in gaming mode, so maybe it's a Gamescope issue? I had temporarily rebased to the last stable Bazzite 40 relaese for other reasons and it still happened. Is anyone else experiencing this? Any solutions or ideas?

Solution:

Turns out the solution was to disable “automatically set resolution” in steam settings

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