20GB Image, 300GB Required to Restore?

Long time Winclone user, first time Winclone 8 user. I tried the new WIM imaging instead of block based since the guide said it would not require shrinking and expanding like the old days. I got a compact 20GB winclone file out of it. However, going to restore to a new drive with a smaller volume than my old drive, it still requires 300GB to restore. My new drive is 200GB. So I can’t. What gives?

that is strange. Where does it say it requires the extra space? If you control click on the image and select Show Package Contents, you should see a Windows.wim file. If you see a boot.img.gz, that means it is a block-based image.