And no scroll bars on apps, nor minimize/maximaze buttons

I have same issue on intel driver, revert to previous again.

Still just guessing here, no answers yet what happens if any of you start with a new, clean user, no answer for the other systems if they are hybrid/what graphics card in use, but since I have to guess, it could be all of you use the intel driver, please test with removing xf86-video-intel (again, no one answered definitive yet if that is the common thread), reboot, and let the system use the modesetting (in-kernel) driver.

jotade70 When I said menu on the left, I meant the taskbar with the big "K" on its left. No trace of the taskbar nor response when pushing the "windows" key.

Logs? There should be something in the Xorg logs when a keyboard button is pushed. But, since you are not testing on a clean user, no indication if the Windows key is even configured to open the menu.

Removing xf86-video-intel driver fixed font issue (at the price of performance), thank you.
But now borders of windows in all styles except Breeze became oversized. Oh well ...

It might be time to remove the intel driver entirely, there hasn't been a release in over 5 years, no commits in about a year. Default in KaOS for intel graphics has been the modesetting driver for 2-3 years now.
Performance issue is not the driver, but a sign of issues in your current users setting.

Tried a new user, same behavior. Big fonts and no taskbar

inxi -G
Graphics:
  Device-1: Intel CoffeeLake-H GT2 [UHD Graphics 630] driver: i915
  v: kernel
  Device-2: Chicony HD Webcam type: USB driver: uvcvideo
  Display: x11 server: X.Org 1.20.13 driver: loaded: modesetting
  unloaded: nouveau resolution: 1920x1080
  OpenGL: renderer: llvmpipe (LLVM 12.0.1 256 bits) v: 4.5 Mesa 21.2.5

llvmpipe has pretty low performance
@jotade70 probably you have configuration in /etc/X11/xorg.conf.d/20-intel.conf
just reduce it to

Section "Device"
  Identifier "Intel Graphics"
  Driver "modesetting"
EndSection

I just realize other options goes driver to load llvmpipe.

    bvbfan OpenGL: renderer: llvmpipe (LLVM 12.0.1 256 bits) v: 4.5 Mesa 21.2.5

    Not clear why your system sets llvmpipe, please try without having any 20-intel.conf. Intel here:

    OpenGL: renderer: Mesa Intel HD Graphics 620 (KBL GT2) v: 4.6 Mesa 21.2.5

    Xorg-server 21.1.x is far more aggressive setting a DPI instead of just falling back to 96 DPI, check your settings with xdpyinfo | grep -B2 resolution.

    I am seeing more reports now in other distros shipping 21.1.x, so I expect a patch/bug fix from upstream soon. Though not clear why in KaOS so far, only intel systems are effected.

    I realize if i have other Intel related options in /etc/X11/xorg.conf.d/20-intel.conf it falls back to llvmpipe. Now i have only Driver "modesetting" and it works perfect.
    If /etc/X11/xorg.conf.d/20-intel.conf does not exists X tells there is no screen.

    bvbfan

    I created the file /etc/X11/xorg.conf.d/20-intel.conf only with:

    Section "Device"
    Identifier "Intel Graphics"
    Driver "modesetting"
    EndSection

    Now 2 displays and taskbar, but still big fonts in apps and system.
    The only exception I have found so far is Firefox , it has the correct font size in menus, but big font in window title.

    Thank you bvbfan

    And what the result of inxi -G

    From all the posts & bug reports for the large fonts for xorg-server 2.21 (basically not a bug, xorg always used to force 96 DPI, and now that it stopped doing that, issue is coming up), easiest solution for now if you are effected by large fonts is to fallback to force font scaling to 96 DPI:
    systemsettings > Fonts > click Force font DPI and set to 96

    EDIT:
    Upstream is going to revert the change:
    https://gitlab.freedesktop.org/xorg/xserver/-/issues/1241#note_1153655
    I'll revert patch for now (seems no new release planned until next week).

    Please test with patched xorg-server in the build repo:

    sudo pacman -U http://kaosx.tk/repo/build/xorg-server-21.1.1-2-x86_64.pkg.tar.zst