"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.
21 มกราคม 2022
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I agree with Chris that they both work! I would probably use first one for quickness!
20 มกราคม 2022
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Both work, but I would probably use the one with "in".