Yes, they sometimes do, but not to such a degree. Sometimes the image is slightly zoomed in, is maybe 2,3:1 or even 2,2:1 instead of 2,35:1, but then the picture composition is still obtained. Only comparatively unimportant parts of the image have gone.
But this example here is extreme. And it looks terrible. And the picture quality must be suffering, when a small part is blown up that much, but apparently it did not, as nobody has complaint about an obvious loss of sharpness in the last reel.