Hi,
The subnet size is determined when you initially create the Application Gateway, and it's based on the subnet configuration you specify during the creation process.
If you need to change the subnet size you need to move to different subnet.
Please Note:
If subnet is named "GatewaySubnet" its reserved for VPN gateways. The Application Gateway V1 resources using the "GatewaySubnet" subnet need to be moved to a different subnet or migrated to V2 SKU before September 30, 2023 to avoid control plane failures and platform inconsistencies. For changing the subnet of an existing Application gateway, see steps https://learn.microsoft.com/en-us/azure/application-gateway/application-gateway-faq#can-i-change-the-virtual-network-or-subnet-for-an-existing-application-gateway
Please click "Accept as Answer" if this helps.