Right. You have to center it (or resize it) to fit in the dotted-line box. That box represents what you see on-screen when you run the game.
That space-shooter screenshot is like that because the layout is sized vertically (height is larger than width) and is centered automatically in the browser. Layouts are always centered.
Open that space-shooter project and look at the layout for it. You will see that the background is stretched to fit over the dotted-line box.