Do not crop project icons || Add avatar cropper
EDIT: The conclusion of the discussion below is to add an avatar cropper that will allow whitespace to be added to the outside of an uploaded image, please see the design proposal.
Proposal
Mockups for the cropper
After uploading the image, if your image is larger than the limit size, you can adjust the size of image through the slider.
Please do not crop the icon for projects. See attached screenshot where the rounded edges of some icons are apparent. Let the user choose the icon and leave it be.