The squares is the way it is supposed to be. It was previously changed to the squares on all the cams. But, some users are experiencing a random reversion to the old single box method. It has been reported to Wyze and they have made efforts to fix the issue but for some, the old method still persists. I believe it is specifically on V2 cams.
Here are some posts from other users also experiencing this who have reported it to Wyze. Linking their posts here will notify them so that they can post in with their experience and recommendations.