Height of the status bar increased weirdly inside the android emulator (AVD)

Question

For some reason the height of the status bar in android emulator is increased. It's not limited to any app though. Attaching the screenshot below:

I have tried cold boot and all sorts of stuff. How can I fix this issue?

The last resort I think of is remove this emulator and create a new one. But my new emulator also starts facing this issue. I am not able to know the reason why this starts happening.

Answer 1

Switching from the "Pixel 5" emulator to a "Medium Phone" emulator was a workaround for me.