background changed after WordPress update

What version did you update to? The following has only been tested in 4.7.3 (and I never use custom backgrounds in the customizer, so I’m not sure what previous version of WP did there).

In the customizer, when you set the custom background image, there should be an “Image Size” dropdown. You probably have “Original Size” selected in this dropdown. If you change that to either “Fit to Screen” or “Full Screen” you should get what you want.

Which one you choose depends on what you want to achieve. “Fit to Screen” results in the customizer outputing background-size: contain ;, while “Full Screen” results in background-size: cover ;.

See CSS background-size Property for the difference between contain and cover.