Hello @Rochishna Aloor,
Thanks for reaching Microsoft.
I attempted to replicate the issue but did not encounter any distorted images/stickers. The image downloaded from this Graph API response was accurate. Please retry the API and verify the results.
If the issue still persists, I would recommend you to raise a support case with Microsoft Graph, a dedicated Support Engineer will be able to look into the issue and assist you better. You can raise support ticket from New support request - Microsoft Entra admin center or https://admin.microsoft.com/#/support/requests.
Hope this helps.
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