My taskbar gets all scrunched up on startup. When i change the size in edit, to a lower value it goes back, I can set it to its regular value and it looks normal.
(My screenshot shows “multi-column view” because my panel is vertical, but it should say “multi-row view” for your horizontal panel.)
Personally I really like this feature, but it seems to work better on a vertical panel, where your apps look like square tiles. I can see how it looks a bit scrunched up on your horizontal panel.