Webp, well on your site it’s showing width=”1″, height=”1″ everywhere, but something (maybe your theme) is cheating by adding widths using css. You can add .wjecf-cols img { width: 100%; } as a workaround, but still it’s not working as it should. Maybe updating php to a newer version helps, it can be related to the ImageMagick version that is used, but I’m not familiar with this so I’m not sure.
You can move the select box using the template override woocommerce-auto-added-coupons/coupon-select-free-product.php . If you’re not familiar with php, you need a developer to do this.