Another option (the one I used when I had a simular problem,) is to turn on refresh rate overide for your video card. When I had this problem, I eventually found out that DOSBox in full screen was using 60hz, and this caused the top and/or bottom of the image to be chopped off. Yet, screen caps showed everything. It was rather frustrating. I set the full screen overide to 75hz (chose that because it's the same as my desktop,) and now I don't have the problem.
Since your problems seems to be the reverse of mine (the image is squished instead of stretched up/down,) then it sounds like maybe your refresh rate is being set too high. I could be wrong about that, but I think it's worth a try 😀