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Hello Caroline. You're not alone in noticing these changes. Microsoft has recently adjusted the behavior of SharePoint's News layout and thumbnail images in some subtle but significant ways. The Unformatted layout, which had clean, text-only capabilities, now defaults to a thumbnail image in the news feed. This change seems part of a much broader enhancement to achieve visual consistency across all layouts, and is most likely preparation for upcoming header/footer enhancements and AI driven sections on pages.
While it hasn't officially been noted by Microsoft to be a bug, they also haven't provided a toggle to turn off thumbnails within the "Unformatted" layout. At the moment, there is no native functionality to remove the thumbnail whatsoever. One workaround would be to apply a transparent or very minimal image as the thumbnail (which would meet the requirement of the layout but would be non-intrusive), or explore the use of the Compact layout, which would have less weight with the presentation of thumbnail images, but still appears to provide thumbnails in most views.
Here's the reference: https://windowsreport.com/sharepoint-sites-new-header-and-footer-enhancements-will-start-rolling-out-soon/
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Best regards,