Thanks Dan, for your work-around to this problem appears to STILL persist in 2021. Not impressed with Adobe's neglect on this issue despite knowing about it since 2017.

Since this is STILL a problem in late 2020, with (at least) AI CC 2019 (v. 23.0.2), and Adobe STILL refuses to even talk about it, I wanted to share the workaround I just discovered:

Pull the offending panel (in my case, Swatches) off, so that it becomes a floating panel, which you then CAN resize to whatever height you want. Then pull off all of the other panels in the original column and re-dock them with the floating panel, so you get an entire floating column of panels that is a recreation of the original, but with properly-sized panels. You then can grab the entire floating panel set and re-dock it over to the side, where it originally was. Fixed! (And shame on you, Adobe, for letting this bug languish for at least three years, and probably longer.)

Hello All,

I observe your Work-space and do the same arrangement at my side and I observe that the issue is with previous versions as well.This is due to all non re-sizeable panels on the top(on focus), if we put re-sizeable panels on the top, issue can be solved.
Please let me know if I can help in arranging.

Regards,
Mohd Ziaullah
Illustrator Engineering Team

Hi,
I have seen the video and the screenshot shared.I am able to reproduce the issue at my end.
Internal Bug ID to track the issue is AI-4210252.

Regards,
Mohd Ziaullah
Illustrator Engineering Team

Same issue here unable to drag the bottom of libraries panel to resize it and bring Align panel up https://www.dropbox.com/s/bw1sw1wnpmg7r7h/Screen%20Shot%202017-11-17%20at%2011.33.41.png?dl=0
Issue arose after updating to 2018 version Mac OS 10.13.1

Hi, checking in again - any updates? Progress? You should have the info you need now, here's the link again- https://vimeo.com/241913002

I am trying t do screencasts using 1920X1080 resolution on an IMAC macOS High Sierra. I have the scale set at default and I have my Illustrator cc2018 fitting into the recording frame. Firstly I would like to set the display to larger text, but this makes the tool panel (I used to scale this to my own choice before) too big and any option windows like the "New Brush Options go completely outside the recording frame and cannot be scaled - I could scale this too in the past. Please can this be sorted as it makes screencasts incredibly difficult. Alternatively do you have another solution?

This issue seems to limited to Windows 10 PCs

Hi again - provided you with a video? Whats the status of this bug? Anybody working on it?

Hi folks - any updates here? Did you watch the video I provided?

Hi, I've created a video of the issue but this website does not allow me to post/upload the video directly (you might want to add that as a feature request). It would appear resizing (vertically) is working in the Essentials workspace (see video), but the Essentials Classic is still locked.
https://vimeo.com/241913002

Thanks for reporting the issue.
We are unable to get the issue.Please provide a video for both the Essentials and Essentials Classic so that it can be easy for us to know the issue.

Regards,
Mohd Ziaullah
Illustrator Engineering Team