Does this issue occur when all extensions are disabled?: Yes

• VS Code Version: 1.67.1
• OS Version: macOS 12.3.1

Steps to Reproduce:

1. Open a code file
2. Vertically resize the VS Code window to make it about 200px high
3. Start typing a term that's valid for the language of the open file, to make suggestions appear.
4. Observe how the suggestions box has the wrong height.

Or see this 2-min video where I demo the behavior.