The Lutheran view is usually a paradox a both-and. From what I understand, they tend to emphasize a relational understanding of the imago. In some ways the Imago Dei was lost or permanently altered, when we lost our relationship with God in the Fall. On the other hand, the Imago Dei continues with us as we all retain the destiny and capacity to return into a reconciled relationship with God. So we are and are not in the Image of God.
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