The bug happens on your dashboard where it shows Microsoft edge, settings, file manager etc -- you can right click to open them as normal -- but if you left click on them then drag the courser above to anywhere above the dashboard then release, it will shrink the icon.
Generally if this happens the icon acts strangely and it happened that my settings icon was overlapping another icon. It seems just resetting fixed this but I thought it was worth noting as makes icon act up. This happens with all icons in the centre bottom of the screen, including the windows icon, search icon etc.
I know Windows 11 is recently added so bugs are normal, and this is not a major issue at all. Just something I thought to note in case it could get fixed one day. Thanks!