Larger gauge wire is almost always better or just as good.
One possible exception is where the source (e.g. lithium battery bank or utility transformer in an industrial neighborhood) can deliver more short-circuit current than you can deal with.
In the event of a fault which shorts power to ground/return, a fuse or breaker must be able to interrupt that current safely. The balance of the system (wires, switches, breakers) carrying the fault current need to hold together long enough for the fault to be cleared. If fuse or other components don't, they can blow apart in an arc-blast, an electric explosion that causes impact damage, hearing damage, and severe burns.
Where smaller gauge wire (or longer length of wire) helps is its resistance. That can drop what might have been 50,000 amps from a bank with multiple strings of lithium batteries to 20,000 amps or less, which a class-T fuse can handle. Or, 20,000A from a single string lithium battery bank to what a lesser OCP device could handle.
Where someone has a fuse that isn't rated for what we estimate their battery can deliver, I would suggest considering where the cables first pass through a metal bulkhead or otherwise have the possibility of shorting, and calculate cable resistance.
One guy here experienced such a failure first-hand. It appears a busbar had bad contact. It was fortunately covered with a lid (on a golf cart) when he shorted a wire outside. The fault went through a fuse (which I don't think opened), but the busbar exploded. No injury, and apparently just one cell damaged by arcing to its terminal. But material blasted around. If the busbar hadn't gone first he did have a good fuse.