You can usually find old(ish) refurbished thinkpada on amazon for around that price. I recently bought a refurbished t480 for $315 CAD
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Chromebooks have a great builtin support for running Linux in a container. No need to wipe and re-install. And they are consistently cheap and often small.
A older Dell XPS 13 could be good too.
I would prefer to have a Chromebook wiped out and turn it into a "real" computer than having to support the ChromeOS
This one is wider than you said your max is, but I own one and it’s awesome. Chuwi Gemibook XPro