I have confirmed it on Mahdi Rom, Stock 4.4, Nova Launcher, Launcher3, and the Google Now Launcher. I've uninstalled/reinstalled the app and done a factory reset. I've even copied the theme images over to the N4 and they work perfectly.
The only thing i can assume at this point is that it's something wrong with the app and the N5, however looking at reviews i don't see a single person mention anything about it in dozens of reviews so i have no idea. I've messaged LevelUp but i have no idea how long it'll take to get a response so i'm really hoping for some help here. I've been using beautiful widgets since the day it was released and i really would like to continue to do so but not if every single skin looks like garbage.
EXAMPLE IMAGES HERE: http://imgur.com/a/vm9bH#gpkQPJ4
due to the size i did not want to embed them.
Thanks in advance to any help anyone can offer.