Sliced sprites doesn't encompass the full image, it has bits and pieces of the individual sprite

Steps to repro:
1. Open attached project
2. Select "Bird" Sprite in the Project Window
3. Open "Sprite Editor" from Inspector
4. Slice the Sprite with "Automatic" type

Actual Result:
Sprite is not sliced properly into multiple sprites.

Expected Result:
Sprite is sliced properly into multiple sprites.

Reproducible on:
2019.2.0a6 (770171a847a0)

Works fine on:
2019.2.0a5, 2019.1.0b4

Environment:
Occurs only on Windows

Note: refer attached video.