I think I have the same bug with Ubuntu 16.10.
16.04 was fine.

Additionally, setting a new wallpaper is a bit slow. The new wallpaper
appears after a delay of 2 seconds without any special effect (no fading
in/out).

Graphics card : Intel HD graphics.

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https://bugs.launchpad.net/bugs/1634220

Title:
  Wallpaper does not resize correctly when adding external display

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