Although the image is very pixelated the rifle on the right does appear to be a Stevens Favorite, at least to my eyes. But judging from the clothing styles I would say that the Winchester is actually a Model 03, made from 1903-1933. The M63 did not appear until 1933. The folks in the picture appear from their apparel to be pre WWI.
Looks like cane in the background just behind the ladies and cat tail in the foreground, so I'm guessing they are standing on the bank of either a tank [pond] or river doing some turtle shooting or perhaps just shooting at flotsom or something on the far bank.
I too think I have either seen that photograph or one very close to it before.