Bitmaps distort any type or vector at the bounding box when exporting to PDF

Frustrating problem that I can't seem to solve, despite reasonable expertise in pre-press.

Whenever I drop a bitmap photo on top or nearby a vector, or type, the bounding box of the bitmap distorts the type around it when exporting to PDF for prepress (x-1 or x-3). Tried every setting, but something is doing this in the conversion. Any drop shadow does the same.

To date, I've had to close-crop the bitmap bounding box so that it is no longer square shape, but rather follows the exact outline of the bitmap...very time consuming and it means I can't use a drop shadow.