Four ways to make a picture fit a box
"Fit inside the box" scales the picture down until both sides are inside, so nothing is lost but one side may be shorter than the box - this is what a blog image wants. "Fill the box" scales until the picture covers the box and then crops the parts that stick out, so the output is exactly the box and nothing is distorted - this is what an avatar or a product thumbnail wants. "Stretch to the box" hits the box exactly by changing the shape of the picture, which is right for a banner and wrong for a face. "Percentage" ignores the box and scales by a number, which is what "make everything half size" literally means.
The output is never distorted unless you ask for it: a 1600 x 1200 photo fitted into an 800 x 800 box becomes 800 x 600, not a squashed 800 x 800. The plan on the page says which size you will get before you run anything, and the result table reports the size that was written.
A shape preset - square, 4:3, 16:9, 4:5, 9:16 and the rest - fixes the height from the width, which is how cropping to a social media shape actually gets asked for. 1080 px wide with a 1:1 shape is a 1080 x 1080 square, and the plan prints that.