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Could probably be theme dependent, as I have what look like 3 pixels in there https://i.imgur.com/LD4BF4E.png :) (I use the Arc Dark theme)

I usually do right click on the title bar to resize the window. But that muscle memory might have been conditioned from having to deal with 1px corners in the past!

Try Alt+RightClick and drag. Not so easy on a trackpad but fine with mouse.

That's fine and all (I make heavy use of this — always miss it on Windows), but it's a workaround to a legitimately inferior UX decision.

It's similar to when early Dell XPS's would overheat when gaming with the monitor open, because the monitor itself would block the sole exhaust vent. The workaround then was to attach an external monitor and keep the laptop screen at 45 degrees.

Same here. I love XFCE, but this is really annoying. I would solve it by protruding a small shape from the windows external sides/angles that can be grabbed more easily as soon as the mouse pointer approaches them, rather than using thicker windows borders.

I don't use XFCE, but maybe it's possible to fix this with an xfwm4 theme? The theme I used on sawfish back in the day had a similar 1-pixel grab area, and I was able to change it by forking the theme and modifying it.