Yes I saw this too. The spacing we are choosing is the smaller
horizontal spacing. The bigger vertical spacing is a bug in some
existing code we haven't modified.

The bug was just previously hidden by there always being too many rows
of inappropriately sized icons. So this is a bug, but it's way better
than previous releases. It will be finished in GNOME 51:
https://gitlab.gnome.org/GNOME/gnome-shell/-/merge_requests/4122

** Changed in: gnome-session (Ubuntu)
   Importance: Undecided => Low

** Changed in: gnome-session (Ubuntu)
     Assignee: (unassigned) => Daniel van Vugt (vanvugt)

** Changed in: gnome-session (Ubuntu)
       Status: New => Triaged

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https://bugs.launchpad.net/bugs/2147387

Title:
  GNOME application launcher excess space between rows at low
  resolutions

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