You are following the same procedure on the remote server and you are getting different results? Are you using the same image too. If there image is too big - then the result is the image is not displayed properly.
Yes I am following the same procedure. for same image local is story image like follow and and working properly.
But for my remote server image is storing different way,
I am not sure, why OOTB thumbnail functionality is working differently on different environment.
It is adding .sftmp extension after file.