That little keyboard will not expand for love not money no matter what I did. And I did try rebooting, completely shut down, etc., however, nothing worked. What has finally worked was installing the Grammarly keyboard free version, and that was only because someone recommend it to me as a tool because I am such a grammar nazi-thats what she teasingly actually calls me. Common punctuation and spelling errors drive me nuts. Maybe it's a keyboard problem or setting, although I've tinkered with all the keyboard settings.
So, for now my problem is fixed. I wonder if the problem might be somehow related to the protective case I use for my iPad, since it keeps the pencil constantly in the charging position and my problem only started after adding the pencil. Hmmmm..... It's a Miesherk case with a neck strap.
Update, OK, rather than retype this whole the thing I'm not sure if my problem is actually fixed. I minimized the keyboard to reread the text and wanted to change something and now the tiny keyboard is back. Agghhhhh!!! I will try to add a screenshot 