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What exactly is the ModuleSize in a DataMatrix symbol and what are some typical values?

The module size can almost thought of as a scaling factor for the whole barcode. In DataMartix the code is drawn using hundreds of small squares. This parameter affects the size if these squares, both black and white. If you change Module size from 5 to 10 then your barcode will appear twice as big.

I would suggest to start of with values between 4 and 12 and just see if the barcode renders at a readable size and is similar in resolution to other datamatrix code samples you have.