"The scale is too large" was going to be my answer. A two-meter-wide steel ball makes for a very, very, very big pinball or pachinko ball. 🙂
kitfox Is there any way I can increase the resolution for tiny scenes?
Maybe you want the physics time step? More updates per second will improve physics accuracy (checking for collisions at smaller scales) at the expense of performance. I suggest merely doubling it to 120Hz at first. You won't want to exceed 240Hz if you can help it.
Editor:
Project Settings -> Physics -> Common -> Physics FPS
In GDScript:
Engine.set_iterations_per_second()