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There could be several reasons for an image appearing distorted when utilizing image animation on React Native.

1. The aspect ratio of the image might not be maintained properly
2. The image might not be scaled or cropped properly
3. The animation might be causing the image to stretch or shrink
4. The device's screen resolution might be affecting the image's quality.

To fix this, you can try adjusting the image sizes, resolution, and aspect ratios, or try optimizing the animation code to prevent any distortion.