If you open /usr/share/plasma/plasmoids/org.kde.plasma.icon/main.qml
and search for line
there’s a section called PlasmaExtras.ShadowedLabel
which seems to correspond with icon text and there’s a line maximumLineCount: 2
you could try reducing that to 1 and it might fix your issue.
It looks like KDE Plasma is based on QT6 and the icons I believe are a QT6 Label so you can also add some styling to it yourself. Here’s the documentation for it: https://doc.qt.io/qt-6/qml-qtquick-controls-label-members.html
There is a property called lineHeight
so you could just add that to the PlasmaExtras.ShadowedLabel
and see if that fixes it.
I don’t understand the appeal of foldable screen smart phones. Seems like nothing more than a gimmick to me.