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from what i have sound Yes this is expected. The Form component control doesn’t expose a supported “height/rows/auto-resize” setting in the designer, so you can’t force it to stretch via a property.
If your tab is meant to show only this one control, the supported way to make it fill the available space is to set the tab’s content type to singleComponent (so the first component uses the full tab height/width) using the client API: tab.setContentType("singleComponent").
tab.setContentType("singleComponent")
If you don’t want to change the tab behavior, the other supported options are:
Use Quick View if you only need read-only related data, or
Open the related record’s main form in a dialog via Xrm.Navigation.navigateTo(...) (you can set height/width there).
Xrm.Navigation.navigateTo(...)
if you like check also here for more info: https://learn.microsoft.com/en-us/power-apps/maker/model-driven-apps/form-component-control https://learn.microsoft.com/en-us/power-apps/maker/model-driven-apps/design-productive-forms https://learn.microsoft.com/en-us/power-apps/developer/model-driven-apps/clientapi/reference/xrm-controls/tab/setcontenttype https://learn.microsoft.com/en-us/power-apps/developer/model-driven-apps/clientapi/reference/xrm-navigation/navigateto
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