Leica D-Lux 7 has a
17.0MP Four Thirds (17.3 x 13 mm ) sized CMOS sensor . On the other hand, Panasonic GH5 has a
20.0MP Four Thirds (17.3 x 13 mm ) sized CMOS sensor and features Venus Engine processor.
One other difference between these two cameras that is worth mentioning is that Panasonic GH5's sensor doesn't have an anti-alias (Low-Pass) filter. Removing anti-alias filter increases the sharpness and level of detail but at the same time, it increases the chance of moiré occurring in certain scenes.
Below you can see the D-Lux 7 and GH5 sensor size comparison.
Sensor Size and Resolution Comparison image of Leica D-Lux 7 and Panasonic GH5 Cameras
Leica D-Lux 7 and Panasonic GH5 have the same sensor sizes so they will provide same level of control over the depth of field when used with same focal length and aperture. On the other hand, since Leica D-Lux 7 has 19% larger pixel area compared to Panasonic GH5, it has potential to collect more light on pixel level hence have less noise in low light / High ISO images.
Sensor size sets the circle of confusion, so it drives how much depth of field each
of these bodies gives you at a given aperture. You can calculate it exactly for the
Leica D-Lux 7
or the
Panasonic GH5 ,
including hyperfocal distance.