I believe I did this correctly, but I am not sure. It had the same result as with the overlay. I’m not certain what you mean by ‘make the canvas the size of the image’, I didn’t see anywhere to adjust canvas size by pixel, unless you mean the “Transform” box. Am I correct in thinking that the circled menu does not affect the in-game behavior?
(The bottom “Set” just centers the reticle when no location is given. That part works fine.)