Your screen shot is showing a filter on a transparent clip, not the video clip that you’re pointing to with the arrow.
Click on that clip that your arrow is pointing to.
- Do you have filter(s) on that clip? If so deactivate them one by one by unchecking the box to the left of the filter.
- If you have no filter, then your Video Mode and your Source has two different resolutions.
- To check resolution of clip, with the clip still highlighted, click Properties.
- To check resolution of project, click Output (Shows in Properties).