>>58164962
When taking everything into account. The lore, the contradictions in canon, retcons, the themes of the series and so on. For both the canon of main games and main anime, the most logical possible interpretation for what Pokémon experience when inside their ball and what happens to them when going inside their ball, is that their bodies are deconstructed and compressed into that glowing mass stuff we see and then the Pokémon experiences a simulated space of some sort. This also explains the differences between the types of balls. Along with lining up with the PC Box system. So yes, Pokémon shrink when going inside their ball. But the idea that "shrink" is meant in the most literal sense, that their bodies literally physically uniformly shrink and just stay in that state inside the ball, is wrong.
>>58165708
All of the stuff in this image has counterpoints.
>>58166109
And the games can't animate a Pokémon properly deconstructing the way the anime can, not even in the newest games. Different mediums, different struggles and ways of animating. Thus in the games, Pokémon physically uniformly shrink. But note that over time as the games went on, they added more and more fancy effects. The laser, the glowing stuff, the particles being emitted and so on. With even different effects for different kinds of balls.
>>58167152
They likely didn't think too much when making the inside-ball design shown in your image, it being so early in the series. Note how basic it is, lacking features we know are inside a Poké Ball. Then much later on we see a Dragonite inside a Poké Ball, and while it's still a featureless ball room, it's more visually fancy and abstract.
But very recently, we got pic related, unlike the previous two examples there's two notable differences here. A ball besides the basic Poké Ball and that the moment was directly about explain how balls work.