There are a few schools of thought on this.

One as mentioned is that a lot of small UTXOs will incur higher fees because your transaction size (in bytes not sats) will be larger.

I don’t like UTXOs being too larger for on-chain transactions because anyone you paid can see how much you have and you don’t want to pay someone 1 million sats from a 100 million sat (1 BTC) UTXO.

I just keep my cold storage UTXOs at about 1 million sats. Nice round number for me.