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FWIW activating "Stacked tabs" in Chrome://flags resolves this by switching to the tablet implementation which doesn't shrink the tabs.

I went and looked at the "Stacked Tabs" flag and it appears to be Windows only.

From Chrome://Flags-

Stacked Tabs Windows Tabs never shrink, instead they stack on top of each other when there is not enough space. Sorry, this experiment is not available on your platform.

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