Inflation leads to a smaller universe at 380,000 years after the Big Bang because it alters the dynamics of expansion. During inflation, the universe experiences a rapid, accelerated expansion driven by dark energy, resulting in a slower early expansion rate compared to a radiation-dominated model. This means that the observable universe's size at that time would be significantly smaller than predicted without inflation. The confusion may stem from interpretations of the observable universe's size before and after inflation, as the Hubble scale remains relatively constant during inflation. Ultimately, inflation changes the conditions of the universe's expansion, impacting its size at various points in time.