Can I use figma plugin API to do the same thing as "resize to fit" button in panel

Did you ever find a solution?

The easiest way is to turn off the clipsContent, get the absoluteRenderBounds, and then use the resizeWithoutConstraints method and change the coordinates of the children if required.

For anyone coming here, I’ve coded up a solution that worked pretty well for my use case. Some edge cases might not be working yet though. Resizes a parent element around all children, assuming absolute positioning of both.

Github Gist - johannesvollmer / Resize to Fit (Figma Plugin API)