Given the laws of optics it’s much easier to design a circular lens than a rectangular one. Both are possible, but rectangular lenses need to be cut from from circular ones so more cost and more error. So it’s about manufacturing. However image detection is accomplished with a rectangular sensor, it’s traditionally made that way because it’s easier to make, package, and rectangular images are the norm. So it doesn’t matter that the image falling on the detector is circular, because the detector will only detect part of it, a rectangular part.
Edit: for more details, please see https://photo.stackexchange.com/questions/40908/why-are-lenses-always-round-in-shape
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