1.Open project
2.Choose Image gameobject
3.Activate RectTransform tool (press T)
4.Try to change RectTransform size (Activate preview)
5.Notice that image appearance is not being updated, but new Image bounds are being drawn. [Look at user attached GIF]

Expected behavior: On dragging RectTransform boundaries Image size and appearance is being updated to fit preview boundaries.
Actual behavior: Image stays the same, but its new boundaries are being drawn.

Repro on: 5.4.0b20, 5.3.5f1, 5.2.4f1.
No repro on: 5.3.5p1, 5.1.4f1

Notice that it stopped working on 5.2.0f4 and was fixed in 5.3.5p1, but on 5.4.0b20 there is still repro.