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I upgraded to Magento 2.1.0 from Magento 2.07 and now my png-formatted product images looks like above. I tried already disabled cache, changed image color profile and re-uploaded but it didn't help.

2 Answers 2

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Seems like php GD or ImageMagick problem, what php extensions you use for image compression and maybe you need to update latest version.

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I removed image watermark on admin panel and now it's working fine.

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