Normal velocity (vector) Dirichlet boundary condition used for a surface of 3d mesh

If you change the order of application of your bcs, you should see no gradual decrease at the inlet, but you would see an instantaneous narrowing of the flow after the first element.

DOLFIN/DOLFINx does not assume any specific units. If you read in a mesh defined in millimeter, your should ensure that the units of your problem makes sense.