I did. The image gets a little bit larger but still way smaller than the area of the thumbnail, i.e. still lots of white space. In the attached SS, the first two TN's have been remade.
The magnifying glass in the toolbar above the thumbnails shows that the thumbnail display is being magnified to 300%. Please reset that to 100%.
Then go to Options | Preferences | Thumbnails and verify that a large size, e.g. 320x320, has been set here (btw, it's best to use multiples of 8 for width and height).
Then go back to the thumbnails, press Ctrl-A to select all the files in the folder and press F3 to re-make them. They really should look good at that point.. hopefully they will.
p.s. Of course the increased thumbnail size comes at a price, which is that the database will reach its 2GB maximum size much sooner. If that is a concern, you may want to use the SQLite3 database format instead of the default Access format (Database | New). SQLite3 does not have a size limit. Or, maybe you can still use small thumbnails, but turn on the Preview of the file-under-the-cursor using Window | Show Panels | Preview. Yet another alternative is Options | Preferences | Thumbnail View | Enable Popup Tips, which shows a magnified thumbnail when the mouse pointer hovers over a file.
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) but you may find a few more pointers in this topic: