>> Maybe a separate bug report is needed?  Because it seems that
>> the order of processing these parameters should be rather like this:
>>
>> 1. first set window-height with fit-window-to-buffer;
>> 2. then check if the constraint of window-min-height is fulfilled,
>>    and shrink too high window.
>>
>> Then 'string-edit' will insert the initial string, and
>> 'fit-window-to-buffer' will fit the window.  If the window height
>> is less than 10 lines, it will enlarge to 10 lines.  But in case of
>> too many lines, the window height should not be more than
>> half of the original window.
>
> Yup; sounds like a separate bug report is warranted.

As was found in bug#55169, this is already possible to do with a lambda: