Yep. It's way too large in linear scales. but if youre using an asymmetrical scale, it can be quite useful indeed.

You don't have to use it though. The system works with any scale factor. 1.618 is just the default.

This video explains in detail how the system works with lots of visual aids.

https://youtu.be/r1DANFZYJDw

Yeah I tried using a similar "golden rule" after reading a design article about it. I based my css variable sizes on it but I kept having to use manual px and rem values instead because stuff just never felt correct.

1.618 is complete nonsense that people hang on to because they want it to be true. It doesn't stack up, neither in ancient Greek times, nor in the renaissance, nor today. It's a dumb idea that needs to die.