You're seeing it like this right? (old pic)
I had this happen too. I asked around in my circles and created a thread here too and it appeared no one else was seeing it like this. Here is what I speculate.
The new layout looks like how Google images would appear on the phone, so maybe it's a certain bug that's making the mobile site appear on your desktop.
Alternatively, do you remember signing up for any a/b testing programme for Google Chrome? I did not either, but Google randomly targets users for testing its upcoming features. If this is the case and this new layout is in the cards, it's one of those episodes where Google fucked it up again.
What you can do is bear with it and sit tight for a while. It will last for a few weeks and then revert back to normal. I got my normal layout back in two weeks or so. If you are impatient, try fiddling around with clearing cache and cookies, etc.
Don't worry, it will pass.