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Labels and/or annotation layers contained in a group layer display as clipped horizontally when printed or exported from ArcMap.
This is a known limitation of group layers that contains layers symbolized with transparency, picture or BMP symbology or raster data sets.
When group layers contains transparency, picture or BMP marker symbology or raster data sets, ArcMap forces all layers in the group layer to rasterize on output. The Output Image Quality option resamples the group layer which can cause any annotation or labels to display as horizontally clipped when printed or exported.