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Putting #4217 on hold for now since I still have not managed to update any local env I create to Jupyterlab 4 successfully, let's go a different route: take from #4217 the fix that I think will work for jupyterlab 4 3b4b324 and the little setup fix 411d66a, but pin our build process to jupyterlab 3 for now 8df887d. Turns out a full upgrade of the process to jupyterlab 4 entails also upgrading the build pipeline from Python 3.7 to 3.8 or later, so a bigger and riskier project than I want right now, and I can't find good information about whether the upgraded version of the extension will work with older versions of jupyterlab anyway.
Fortunately even for jupyterlab 3 users this change has a benefit: we previously set 360px as the minimum output height, but with this change that's just the default, if you set a smaller height that's what you'll get.