Can no longer turn the video compression off with new Storyline 3 update...

I've had this issue for over a year sporadically and seemingly without reason like many on here, but I use Camtasia to produce my videos so thought I'd share what just worked for me after struggling for the past 2 days to get this done. 

Storyline 3 File: 

• My course has a story size of 720 X 405

Original Video (Showing compression error): 

• Camtasia settings when publishing show the following: 
  • MP4 file
  • Embed Size: 852 X 480 
  • Video Size: 1280 X 720
  • H.264 profile: Baseline

New Video (Without compression error): 

• Camtasia settings when publishing show the following:
  • MP4 file
  • Embed Size: 720 X 406
  • Video Size: 1280 X 720
  • H.264 profile: Main

After republishing the video with the new settings all I did was remove the original video file that wouldn't let me adjust compression and imported the new file and I was immediately able to change compression from "Automatic" to "None". 

I don't have any true understanding as to why this worked as I'm used to using default settings when I publish. My theory is that the embed size was larger than the Story size which is why it wouldn't let me get by without compressing. 

Hope this helps anyone using Camtasia. I'd be curious to know if changing publishing settings like embed size to match story size works for anyone else using other programs.