Drag the photo to move it. Pinch or scroll to zoom. The faint lines are one LED each; the small picture is the result.
Only background connected to the picture's edge is removed, so white inside the subject (a face, an eye) stays. If the background leaks inside through a gap in an outline, lower the tolerance.
Dithering is off while Flat art or Exact pixels is on. Untick both to use it.
Flat art finds the picture's main colors and gives each LED whichever one covers most of its cell, so outlines and soft edges disappear and the result is already in a small palette. Raise Small details if an eye, nose or thin strip drops out; More suits artwork shown small, Some suits zoomed-in artwork. Use it for illustrations, logos and clip art; use averaging or dithering for photos. Dithering is baked in at the current brightness and gamma.