SUMMARY

Plasma Shell restricts resizing (specifically, shrinking) applets.
Kinda makes sense, except it is weird, inconsistent, and should
not happen for applets that have a compact representation.

Videos showing the problem:

# Part 1: https://youtu.be/jsnIsdVG5cc
# Part 2: https://youtu.be/Hm0BgQ5jrOc

STEPS TO REPRODUCE
1. Add some applets on a desktop (e.g. Battery & Brightness).
2. Press and hold, or otherwise Enter Edit Mode.
3. Try resizing applets on your desktop.

OBSERVED RESULT

Various results, depending on the moon phase. Restrictions on shrinking imposed by Plasma vary, sometimes they are uni-dimensional, other times — in both directions at once. Releasing the mouse (hold and drag) and trying again may lead to different results.

EXPECTED RESULT

Some consistency to be expected.

SOFTWARE/OS VERSIONS

Operating System: Arch Linux
KDE Plasma Version: 5.23.4
KDE Frameworks Version: 5.90.0
Qt Version: 5.15.2
Kernel Version: 5.15.11-arch2-1 (64-bit)
Graphics Platform: X11
Processors: 8 × Intel® Core™ i7-6700HQ CPU @ 2.60GHz
Memory: 15.6 GiB of RAM
Graphics Processor: NVIDIA GeForce GTX 970M/PCIe/SSE2