I’m having the same issue
I uploaded a photo using the wordpress admin
Settings are as follows
Automatic watermarking ON
Manual watermarking ON
Enable Watermark for ad-medium ad-small ad-thumb blog-thumbnail full large medium post-thumbnail sidebar-thumbnail thumbnail
Everywhere
Automatic frontend watermarking ON
Plugin deactivation OFF
Watermark alignment BOTTOM MIDDLE
Watermark offset
x: 0 px
y: 0 px
Watermark image
Watermark size SCALED
Image format BASELINE