I am not sure what causes this but could i get some help!

Where? I do not see that in your VLC screenshot. I see 1280x720. I assume that is your source file.
What is Settings > Video Mode set to? That is the first step. Make it match your source.

To see what your project is using, click Master (Output in version 20.06 or later) in top left of Timeline and then Properties.

If VLC is correct, then open the project and change Settings > Video Mode to HD 720p 60 fps. Next, you need to review your project since you changed it. Now, you should find Export follows your new project video mode.

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