We are working on a design with more density in mind. Until this design is solidified we are putting this item back to Under Review.
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majority of people use at least 1920x1080 monitors now, and at full screen, the left and right whitespaces/margins around the chat area is more than half the width of the chat area itself. And if I zoom out one step (Ctrl - once), chat area takes less than half of the screen.
How about prioritize getting rid of that left right margins around chat area? you'll see more chats that way; it won't make Teams look unprofessional; it won't look like an app designed decades ago for smaller screens; and I can't imagine that would be a lot of work; small impact, small work, big value.