Panasonic G85 has a
16.0MP Four Thirds (17.3 x 13 mm ) sized CMOS sensor . On the other hand, Leica Digilux 3 has a
7.0MP Four Thirds (17.3 x 13 mm ) sized CMOS sensor .
Panasonic G85's sensor provides 9MP more than Leica Digilux 3's sensor, which gives a significant advantage in real life. You can print your images larger or crop more freely.
On the other hand, please keep in mind that Max sensor resolution is not the only determinant of resolving power. Factors such as the optical elements, low pass filter, pixel size and sensor technology also affects the final resolution of the captured image.
Another difference between these two cameras is that Panasonic G85's sensor lacks 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 G85 and Digilux 3 sensor size comparison.
Panasonic G85 and Leica Digilux 3 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 Digilux 3 has 114% larger pixel area (30.47µm2 vs 14.21µm2) compared to Panasonic G85, it has larger pixel area to collect light hence potential to have less noise in low light / High ISO images.