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I was hoping to see it released by now. Maybe Xara found a last minute bug...

It should be updated any time now...... there was an update for Designer Pro X365 released on Mar 30, 2017, so hopefully the next Designer Pro X365 update should not be that far away.

I asked this very same question on Xara's facebook Page and Xara's reply was was It's imminent"

From that, it should be any time now....

For this to work , it has to be a whole image and you have to use the fill tool. It will not work on a partial clone of an image.

Your example is exactly what I was talking about. I actually thought my verbal description was enough.

Simply put, I want the ability to stretch and distort images (and clones of parts of images)...

One use I put stretch and distort image to is when fitting a cloned copy of part of an image onto another part of the same image, one sometimes needs to stretch and distort the clone slightly to make...