"You're much more handsome than in your picture" is actually the correct one because it's complete, although for every day speaking, people say both all the time and they are both perfectly understood.
January 21, 2022
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I agree with Chris that they both work! I would probably use first one for quickness!
January 20, 2022
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Both work, but I would probably use the one with "in".
January 20, 2022
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