Further research made me find out that this issue is related to mutter
bug https://gitlab.gnome.org/GNOME/mutter/-/issues/3404

The workaround by running the command:

$ pkill -HUP mutter-x11-fram

fixes this behaviour

** Bug watch added: gitlab.gnome.org/GNOME/mutter/-/issues #3404
   https://gitlab.gnome.org/GNOME/mutter/-/issues/3404

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https://bugs.launchpad.net/bugs/2066408

Title:
  window cannot be resized when using nvidia drivers

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