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I have created a custom product type and its variations are created with attribute 'Size'. If I create a new product with its multiple images, then the catalog view shows these multiple images instead of a single image.
Below is the Product type variation 'Manage display' settings.
In future anyone need the answer, The image fields's format to be set to 'Image delta'. If image delta value set to 0 then the first image will be displayed and if it is set to 1 then the second image is displayed and so on.
Delta appears for the fields that has multiple values and delta refers to the order by which it appears.