I just checked with the devs on this, and unfortunately, right now we consider this intentional… SVGs are not reliably transformed by Imgix and should not go through the <Image/> component. You can filter for this this in the validation UI for images: New validation on asset fields: image transformable by Imgix
If the issue ever comes up, you might want to do that and/or do a check on the frontend to render SVGs differently. Sorry about that, and glad you found a workaround in the meantime!