Cannot upload to workshop, Thumbnail too big.

I'm currently unable to upload a simple small grid with all vanilla parts to the steam workshop because the thumbnail is too large. I've read through other bug reports and attempted the workaround but this still has not be successful.

My Blueprints are stored on the cloud not locally which is i think part of the issue.

I create the blueprint and capture the image inside of Space Engineers. I receive the error if i try to publish, i've attempted going to the directory and downscaling the thumbnail but when i load my blueprints in the game, it replaces the downscaled image with the original image of 1.2 MB.

Default Resolution, 2560x1080

Default Quality, High

Location taken, on a planet.

Steps taken to resolve the issue so far

1. Downscale image manually - fail, file gets replaced when loading blueprint menu in SE

2. Change to lower resolution like 1080p and even lower resolutions - fail, lower file size but still over 1MB

3. Change image quality to low - fail, again lowered file size but by only 500 KB

I've jumped through hoops trying to get this to upload. I've attached the default thumbnail taken by the game.