We have seen multiple reports of this problem since launch of iPadOS14. I too am experiencing the issue - and despite many days of attempts, I’ve not found a lasting resolution. The issue of inconsistent sizing/scaling affects Home Screen App/Folder icons and the new Widgets.
In addition to you highlighted icon, your Weather Widget (to the right of battery widget) also exhibits the problem. You will also discover that the affected icons/widgets will change over time.
Restart or forced-restart sometimes provides temporary relief, but the problem returns.
As Apple engineering do not or review any posts to this site, please report the issue as a bug using this Apple iPad Feedback Page:
https://www.apple.com/feedback/ipad.html
When submitting the report, ensure that you include details of your iPad model and installed version of iPadOS in the body of the report. The drop-down menu doesn’t yet include iPadOS 13.7 or 14.0.
The only way to get this problem noticed is for those affected to individually submit a bug report. Please don’t rely upon the reports of others.