Panasonic LX100 II has a 17.0MP Four Thirds (17.3 x 13 mm ) sized CMOS sensor and features Venus Engine processor. On the other hand, Leica X Vario has a 16.0MP APS-C (23.6 x 15.8 mm ) sized CMOS sensor .
Below you can see the LX100 II and X Vario sensor size comparison.
As seen above, Leica X Vario has a 1.7x Larger sensor area than Panasonic LX100 II. Larger sensors give photographer more control on the depth of field and blurry background compared to smaller sensor when shot in same focal length and aperture.