Note : Issue is seen in Video Mode also i.e.  blink of 'Delete' icon with no Video preview is seen after clicking on 'Take photo' 

I guess it takes a short amount of time to load an image from an object URL vs using a data URL like before. Just setting the image height might be enough as that avoids having the delete button move.

The following revision refers to this bug:
  https://chromium.googlesource.com/chromium/src.git/+/fa4e970147ffd462b986d309f1aa7f0b39cdaa8c

commit fa4e970147ffd462b986d309f1aa7f0b39cdaa8c
Author: David Reveman <reveman@chromium.org>
Date: Mon Oct 23 22:52:18 2017

Change Picture: Always set height of image preview.

This makes the delay when loading the image less noticeable.

Bug:  777376 
Test: manual
Cq-Include-Trybots: master.tryserver.chromium.linux:closure_compilation
Change-Id: Ia9f60d6ef4f55d8635f803f458ffabbfa69a7c3c
Reviewed-on: https://chromium-review.googlesource.com/734230
Reviewed-by: Steven Bennetts <stevenjb@chromium.org>
Commit-Queue: David Reveman <reveman@chromium.org>
Cr-Commit-Position: refs/heads/master@{#510950}
[modify] https://crrev.com/fa4e970147ffd462b986d309f1aa7f0b39cdaa8c/ui/webui/resources/cr_elements/chromeos/cr_picture/cr_picture_pane.html

Marking as fixed. However, it's not perfect as there's still some delay before the image is displayed but the delete icon is at least not moving anymore so it's much less noticeable. Please re-open if UX determines that more work is required to improve this.

[Auto-generated comment by a script] We noticed that this issue is targeted for M-63; it appears the fix may have landed after branch point, meaning a merge might be required. Please confirm if a merge is required here - if so add Merge-Request-63 label, otherwise remove Merge-TBD label. Thanks.

Verified on M64 dev build (10109.0.0, 64.0.3261.0).