Nope, while I am using blocks larger then 1×1 I dont have that issue.
I have found the cause of the two problems is in my css.
The css is causing the image to not align with the grid and the mouse pointer to be distanced from the image making it not possible to add it to the grid.
The issue is somewhere in some of this CSS code:
border: 1px solid black;
border: 2px solid #4C3C1B;
margin: 0 auto;