This can be changed via chrome/userChrome.css.
Mine is:
@namespace url("http://www.mozilla.org/keymaster/gatekeeper/there.is.only.xul");
.tabbrowser-tab {
min-width: 3em !important;
clip-width: 3em !important;
}
[uidensity="compact"]:root {
--tab-min-height: 30px !important;
--newtab-margin: -3px 0 -3px -3px !important;
}
.tabbrowser-tab {
max-height: var(--tab-min-height) !important;
}
.tabs-newtab-button{
margin: var(--newtab-margin) !important;
}