Thumbnail image of Contact QML element is not scaled properly in Symbian

Contact QML element does not scale thumbnail image properly in Symbian. Scaling a thumbnail image works properly with same CreateContact example application and same image(2011-12-20-004.jpg) on Harmattan. Scaling also works properly in Symbian with attached samplephonebook C++ example application.

Steps to reproduce:
1. Copy attached 2011-12-20-004.jpg image to the root of the e: drive(mass memory) on the Symmbian device.
2. Compile and launch attached CreateContact application.
3. Press "save contact" button.
4. Open a "Contacts" Symbian application and check thumbnail image of "John Gates" contact. Thumbnail image looks ugly.
5. Compile and launch attached samplephonebook app.
6. Select "John Gates" contact and press "Edit" button.
7. Press "Set picture" button and re-set same 2011-12-20-004.jpg image to "John Gates" contact and press "Save" button.
8. Open a "Contacts" Symbian application and now thumbnail image is shown properly.