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Not that Photoshop should ever allow its panels to become impossible to resize, but...
Have you considered just setting up named workspaces for each environment, then switch them manually using the box in the upper-right of the Photoshop main window?
Given the ability to maintain workspaces fairly directly, Adobe may not even feel this is a bug.
Very novel, Noel. Tried out your suggestion and it works.
To your point, though, I would consider this a workaround rather than a fix. For the time being I've saved a 2nd workspace and will have to do the daily toggle as a workaround is better than being stuck.
I have found that usually moving the layers tab into another smaller pallete, and then moving it back out usually fixes the height. SOMETIMES collapsing the panel to a button and then reopening it works, too.
Thanks for the ideas but I have not found either of these methods to work.
For the time being I've created a custom workspace for the large monitor.