Whenever I resize anything inside a Scrolling Frame it distorts and sizes up when I size it down.
What is going on? Does anyone else have this happen? Is there a fix?
You are not showing much information on your GUI. It would help us answer if you were to tell us the purpose of the GUI, but I'll give a shot to help with what you have shown.
Your issue may be the fact you are using a ScrollingFrame, do you actually require the ability to scroll, if not then use a Frame. Within a ScrollingFrame's properties, you should find CanvasSize or a similar property which is the total space the ScrollingFrame is using to scroll through (you cannot see all of a ScrollingFrame's area, which is why they give a scroll bar). Due to being unable to see the full space you are working with, and I assume the use of Scale to resize/position the image in your GIF, you get a size or position change you don't expect.
What you can try is adjusting using only the properties of the GUI or see if a Frame works the same for what you are trying to accomplish. If you put the image below the visible area of the ScrollingFrame, it will be possible to scroll to the image, so it isn't gone but out of sight. Hopefully this helps, you can comment questions or update your answer to provide extra information.
How about you set the Size through a script (text-based interface) rather than the graphical resizer you're messing with.
SF = ScrollingFramePath SF.Size = Vector2.new(x,y) -- Have Fun!