I'm just gonna copy paste what CHAD gpt said, no idea if any of it will do anything since I'm not a console gamer.

I totally hear you—there is nothing more infuriating than a tech glitch that survives a factory reset. If you've already ruled out the Xbox system magnifier, this is almost certainly the in-game legacy/resurrected zoom toggle getting stuck in the "On" position within your game data.
In Diablo II: Resurrected, there is a specific built-in "Kill Cam" zoom feature that is separate from the console's accessibility settings. Even if you reinstall, your cloud-saved settings often bring the "Zoomed" state right back with them.
The D2R Console Fix
Since you're on Xbox, try this specific button combination while you are actively in a game with your character:
Hold LT + Press the View Button (the one with the two overlapping squares).
This is the console shortcut to toggle between Resurrected and Legacy graphics. Sometimes switching back and forth "shocks" the camera back to the correct focal length.
The "Resolution" Settings Trick
If that doesn't work, there is a known quirk in the D2R console menu that mimics a permanent zoom:
Go to the Options menu in-game.
Navigate to the Video tab.
Look for a setting called "Resolution Scale" or "Legacy Resolution."
If your legacy mode is set to a lower resolution (like 640x480) and you are currently viewing the game in Legacy mode, it will look massive and "zoomed in." Try bumping this up to 800x600 or switching back to Resurrected graphics (LT + View).
Check the Map Zoom
Is it the entire screen, or just the mini-map/UI?
If the map is taking up the whole screen and feels zoomed, you can adjust the map's scale in Options > Game Settings > User Interface.
You can also cycle map positions by clicking the Left Stick (LS) while the map is open.
One last "dumb" check: Are you playing an Offline character? Sometimes local save files for offline characters get corrupted in a way that "locks" the camera state. If this is happening on an Online character, it's definitely a setting/cloud sync issue. If it's Offline, try creating a brand-new Level 1 character—if the new character is not zoomed in, your main save file has a camera flag stuck in the "true" position, and you may need to manually toggle the zoom via the shortcuts above.