Sprites are stretched after packing with sprite packer

I am using Unity 5.1.0 Personal edition. I am seeing some artifacts after packing my sprites using Unity’s Sprite Packer. Here are two screenshots that show the artifacts in my sprites. Lot of space is being wasted in the atlas and more sprites can be packed in the remaining space. Let me know if anyone else is experiencing this issue and has a solution for it. Thanks in advance for all the help.

Same issue in Unity 2019.4.19f1.
png, filter mode Point, Format Automatic.