images in lay theme are always sized based on the width of your browser, not ur height
not sure, maybe you need to use a menu bar in customize -> menu -> menu bar
or make ur images smaller
there has never been any lay theme functionality that keeps 2 images in a fullscreen slider slide from getting cropped top and bottom. the only functionality like that is for when u only have one image per row and use the option described in my previous answer "activate "Give elements a max-width and max-height and center them""