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