External Monitor Display Scaling/Zoom/Resolution Issue
I've recently purchased a new 27" display to go alongside my existing iMac and 21" monitor. However, the display is significantly enlarged, as can be seen in the screenshot provided below. I've highlighted the difference in size between the menu bar and the Chrome tab (dragged across each display to ensure consistency).
I've tried adjusting the resolution, changing cables and ports, resetting the SMC and NVRAM - both suggestions from Apple - and nothing I've tried thus far has worked.
It also appears to me that the iMac is treating the 27" display as a 21.5" display and upscaling to fit the monitor? Hence the sizes on the Alignment tab. The deadzone between both monitors - again as seen on the Alignment tab - also exists when in reality there should be no deadzone as both displays are the same size?
Any suggestions would be greatly appreciated. Feel free to ask any relevant questions.
iMac with Retina 5K display, macOS 10.15