Solved the issue. For anyone else having this problem who might find this thread;
The problem was, you guessed it, WINDOWS!
I right-clicked my desktop and left-clicked “Display settings.” Under “Display”, the “change the size of text, apps, and other items” slider for display #2 was set to 125% for some reason. I surely didn’t do it. Moved slider to 100% and Vegas is now displaying a full screen on external monitor.
Hope this helps someone down the road.