AFAIK the area in the tag panel resizes if you give the tag panel more horizontal space.
You can also see the embedded picture in its full beauty if you double-click the display in the tag panel.
See also the history of changes:
[2021-10-15] NEW: added cover preview via double click on the cover on the Tag Panel. (#14839, #18769, #44340, #45362, #50462, #53985)