The new compact mode in Microsoft Teams, let you see more of the conversation in one Screen.
Here you can see both side by side. I’ve used the same size window and the same chat so you can see some of the differences. Now I know it’s not the easiest to see in this image unless you have a giant screen, but the comparison will give you an idea of how many more messages are shown in the compact mode.
Apart from being more tightly packed you will notice that in Compact mode the reactions are displayed under the message and that your own messages no longer right align, but do have your name on them.
Compare this to the standard or Comfy mode
To switch between the modes in Teams got to … menu on the title bar and choose Settings then in General choose your chat density.