WordPress max width (2560 px) overrides Instant Images max width setting

The new WordPress default max width 2560 px overrides the max width setting in Instant Images. For example: If I set the max width to 1920 px in the Instant Images settings and import an image via Instant Images, the image width will be 2560 px in the media library.

Here’s a screen recording: https://youtu.be/k4KdMeTeheQ

I use the latest version of WP (5.4.2) and Instant Images (4.3.2) and no other plugins are active. I get the same result with both Divi and Twenty Twenty.

Is it a bug/conflict or am I missing something?