Resolved
There are 3 separate problems when outputting images with custom sizes via the types shortcode (each resulting in the full sized image being output).
1. This has stopped working altogether in PHP 8
2. This may fail (server dependent) if the image filename contains non-Latin characters (e.g. Cyrillic characters)
3. Images in the webp format are not re-sized correctly
The issue is fixed with the release of Types 3.4.17