Setting width and height of the destination bitmap (Image7.Picture.Bitmap) equal to the size of the source
control (Image1) is not correct because the source
bitmap (Image1.Picture.Bitmap, or more general: Image1.Picture) may have a different size than the source control.
Try this instead of lines 13 and 14:
Image7.Picture.Bitmap.Width := Image1.Picture.Width;
Image7.Picture.Bitmap.Height := Image1.Picture.Height;
// or: combine both in
Image7.Picture.Bitmap.SetSize(Image1.Picture.Width, Image1.Picture.Height);