I was shocked when I first hit this. I'm also confused as to why the settings app constrains the window size but I think it did that in the previous version too - not a justification!

I complained about it to a team mate and he thought it was fine and I was weird for using the app launcher and not cmd-space. Although on Windows I always use win-r to run stuff.

Tahoe UI changes and LG are such a mistake and Apple being Apple will probably just double down on it.