From what I can ascertain from some research, the spacing is default and would either require adjustments via the Registry or using a 3rd party Windows Desktop adjuster. See https://www.makeuseof.com/windows-11...sktop-spacing/

There is a 3rd party app called Desktop Icon Spacing. It is supposed to be free, but I do not know if there are pitfalls with it.

The desktop icon spacing is something that always bothered me a little when using Windows. On MacOS you can space things any distance apart or almost totally on top of each other.