Summary
Unlike in X11, both UI and buffer fonts look blurry in KDE Plasma Wayland session with fractional scaling on (120% in my case).
I mitigate this bug by any of pressing F11 to enter full screen mode, maximizing the windows or entring "Monocole" mode in Kröhnkite (A KWin script for dynamic tiling).
The latter option makes Zed window edges disappear outside of the screen when I enable Fully maximize windows (no border, no gaps) in Krohnkite settings.
Zed Version and System Specs
Zed: v0.192.6 (Zed)
OS: Linux Wayland arch unknown
Memory: 38.8 GiB
Architecture: x86_64
GPU: Intel(R) Iris(R) Xe Graphics (ADL GT2) || Intel open-source Mesa driver || Mesa 25.1.4-arch1.1