Desktop dimensions too zoomed out Ubuntu 20.04

So I recently upgraded to Ubuntu 20.04, and my main issue is that although the screen is correctly captured (I am using VirtualBox!), the Desktop is too zoomed out i.e. icons appear too small, terminal and other apps are too small as well...So far I have tried:

• Rescaling to 200% within the display settings. This works well at first, but upon opening a random app I still see its interface as zoomed out.
• Running xrandr --output Virtual1 --scale 0.5x0.5 to zoom in actually fixes the issue too, but then the mouse is way to slow to move around...
• My Guest additions are there, mouse integration etc. are ok

I just have this desktop that doesn't correspond to my screen. Any ideas? Thanks! Look:

Best wishes