Freshly updated Spotify Android app.
Apart from the fact that it just looks ugly, the overall experience became worse. Before the album cover was centered and fully visible. Swiping on the cover skipped the track. Now the album cover is stretched to fill vertical space (which cropped the sides barbarically), and swiping only works in a vaguely defined upper portion of the screen. The swiping area is not visually defined now — you don't know if the swipe would work until you try.
This "let's stretch, crop and darken a picture and use as background" idea almost never works if you don't control the picture. Album covers come in all shapes and forms, and — believe it or not — they can be important to music lovers. This sort of "meh, good enough" approach to an important part of music is not something I'd expect from a music service.
And covers sometimes include words. So, cropping it and putting other words on top is not a great idea.
(Feedback and screenshot provided by @minotauria)