Aspect ratio 720x576 (1.25) plays 1.21, how to fix?

[TopskyIII]

Old DVD clips aspect ratio distorted.
VLC codec states video 720x576 (1.25) and should be VLC setting 5:4

But in fact on screen ratio is 1.21.
VLC ratio has been set manually to 5:4 but no change to automatic ratio.
So when VLC codec states 720x576 (1.25) on screen it's displayed 1.21

And actually looks better played 4:3 aspect ratio (1.33)
Since there is visible distortion, aspect ratio has been measured on screen with ruler as results above.

Original is PAL DVD from 2004 - 720x576, mpg.
I converted to mkv but no change.

Any ideas how to fix without setting manually aspect ratio to 4:3 each time for each clip?
Thanks.

[Hitchhiker]

Hit the letter 'c' repeatedly until you get the desired aspect ratio. Letter 'o' to toggle.

[mederi]

Try to remux video in MKVToolNix (set the right aspect ratio of the video track there).