We have over 1,500 TIF files (subdivision plats) that we georeferenced over the last several years. These have the full set of TFWX, etc files for each plat. At 10.3, we could click a button on a tool we made, click on the map, and the sub plat would load into the map in the correct location.
After upgrading to 10.7.1, this only works part of the time. The rest of the time, the plat loads, but we have to use "zoom to layer" to see it. It has moved outside our city boundary and become many times the size of the entire city! Changing the "no data" color to make it visible, the supposed extent is even larger- a square about the size of our state. Sometimes the image appears as a spotty black and white diagonal smear.
I have opened the TFWX file, and everything looks normal. These are not newly-scanned, so the issue is not caused by new scanning software variations. These are older scans that worked fine before.
If we load one of these misplaced, or misplaced and misshapen TIF images using an older machine that still has 10.3 on it, they behave correctly. The fault is apparently not in the TIF, the TFWX, etc, but in ArcMap itself.