Video:
I uploaded a video to the KDE reddit, I’m trying to figure what is causing this issue since the other terminals re size perfectly and those 2 lag horribly there must be a reason(?)
My Specs:
OS: CachyOS Linux x86_64
Host: Alienware x17 R2 (1.21.0)
Kernel: Linux 6.12.0-rc4-2CachyOS-V3
Uptime: 2 hours, 32 mins
Packages: 1354 (pacman)
Shell: zsh 5.9
Display (AUOBD90): 1920x1080 @ 360 Hz in 17" [Built-in]
DE: KDE Plasma 6.2.2
WM: KWin (Wayland)
WM Theme: Breeze
Theme: Breeze (GruvboxColors) [Qt], Breeze-Dark [GTK2], Breeze [GTK3]
Icons: char-white [Qt], char-white [GTK2/3/4]
Font: Noto Sans Mono (10pt) [Qt], Noto Sans Mono (10pt) [GTK2/3/4]
Cursor: breeze (24px)
Terminal: alacritty 0.14.0
Terminal Font: monospace (12pt)
CPU: 12th Gen Intel(R) Core™ i7-12700H (20) @ 4.70 GHz
GPU 1: NVIDIA Geforce RTX 3070 Ti Laptop GPU
GPU 2: Intel Iris Xe Graphics @ 1.40 GHz [Integrated]
Memory: 4.32 GiB / 30.99 GiB (14%)
Swap: 1.25 MiB / 30.99 GiB (0%)
Impossible to say…
However, if I open a Kitty/Konsole window side by side, and drag them around, they’re perfectly in sync and not at all laggy.
I’d suggest doing the same test in a new USER to verify that it’s your system, then start looking at the system.
I’m confident it isn’t Plasma - but then, I didn’t throw a spanner (with NVidia printed on it) into my machine, but then I don’t know enough about Cachy to know if that’s relevant - I’d be taking this up in the distribution forum.
CachyOS is famous for being a highly optimised form of Arch, it could just be that it wasn’t optimised to suit your machine. I’m using a ‘curated’ form of Arch (Manjaro) and it’s smooth as butter.
UPDATE:
Okay! I’m back with an update! I was looking around, changed shell but nothing happened. then I figured that since everything else is resizing without a problem the problem is either rooted at the program itself, or how the program is displayed…
I started to go over the settings of Kitty and found linux_display_server auto.
The description for the setting allows to force a display mode auto | wayland | x11
Now just playing with it I changed it to wayland, BIG surprise no changes still lagged. However I changed it to x11 and restarted Kitty… it’s smooth as butter, it’s just as smooth as the other terminals.
Now the big question is why is it lagging with the wayland display server? are the other terminals running under wayland or x11?
I’m more confused now but at least a) it’s smooth and nice b) the root of the issue has been narrowed a little
If anyone knows or has an idea of what it could be please let me know! 
FYI the default (auto) works for me on wayland and x11 - CachyOS forum no help?