The problem you're trying to pinpoint is TENSION ISSUES, and cozy fantasy is fuckin RIFE with them. Major chronic problem with the genre, and editors just keep letting authors get away with it instead of developing the story.
Low stakes are fine, utopian settings are fine, even low-conflict is fine -- but you gotta have a source of tension SOMEWHERE, or it pisses people off. If everyone's cooperating together and an amazing team and there's no interpersonal drama, ok great, but hit them with a tornado or a famine or heavy rains that wash out the fields right after planting.
The following have been called the "7 types of conflict" but people always think conflict means fighting or angry feelings, so i do think that "7 types of tension" might be a better wording:
Person vs Person (this is the one that cozy fantasy is most allergic to, and that's ok!)
Person vs Society (cozy fantasy also allergic to this one, we're still fine!)
Person vs Self (inexplicably underutilized, it rules, highly recommend)
And here is a list of free cozy fantasy tension points for each one of those. Feel free to steal these, adapt them, tweak them, etc -- as long as you promise to commit to the bit and actually make your protagonist face their problems head-on and have feelings about them and actually DO SOME HARD WORK to resolve them instead of conveniently handwaving it all away. (Your protagonist's name is Blue.)
Person vs Person: Blue's neighbor has a longstanding grudge and is trying to get Blue's bakery shut down by any means necessary, including reporting Blue to the health inspectors, who threaten to shut the whole operation down. (If you are writing for adults, then the grudge is bad enough that it CANNOT be solved with the power of friendship or by offering said neighbor free daily croissants. C'mon, don't wimp out. Imagine the Worst coworker you've ever had. Imagine the pettiest HOA lady ever.)
Person vs Society: There is a war in the neighboring kingdom which has impacted the chocolate chip import market. Blue's bakery is struggling financially, and the bank is making ominous noises about Blue's fantasy student loans.
Person vs Self: Blue is having a crisis of faith. They inherited the bakery and they hate running it, but they feel an obligation to their beloved dead relative. They don't know how to balance this against their own dreams, and they feel a ton of guilt about it.
Person vs Supernatural. Blue boasted that they're a better baker than the local hearth goddess. Blue now has a curse that fucks up every loaf, danish, cookie, and sticky-bun they touch. They can't even go into other people's bakeries without jinxing them.
Person vs Fate: Several generations ago, a fortune-teller spoke a prophecy that says the bakery will fail if someone matching Blue's description takes over. Blue doesn't give a shit about that, Blue is determined to make it work, Blue spits in the face of Fate.
Person vs Technology. A new bakery opens just a block away from Blue's, with newfangled magical ovens and staffed entirely by magic robots. Can Blue compete against this? We explore the upsides and downsides between artisanship and mass manufacturing.
Person vs Nature. A really bad winter strangles the town, trapping people in their homes. Blue doggedly wades through waist-deep snow on their daily bread deliveries to the old folks of the town, but they slip on ice and twist their ankle really bad.
(Anyway read my book Yield Under Great Persuasion, which is an M/M cozy romantasy with lots of different tension points -- we've got a lil bit of #1 and #2, a WHOLE LOT of #3, and a smidge of #4 and #5)
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