1. Solution for iOS 13+

With Swift 5.1 and iOS 13, you can use Compositional Layout objects in order to solve your problem.

The following complete sample code shows how to display multiline UILabel inside full-width UICollectionViewCell:

CollectionViewController.swift

import UIKit

class CollectionViewController: UICollectionViewController {

    let items = [
        [
            "Lorem ipsum dolor sit amet.",
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris. Lorem ipsum dolor sit amet, consectetur adipiscing elit.",
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.",
        ],
        [
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt.",
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.",
        ],
        [
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt.",
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.",
            "Lorem ipsum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.",
        ]
    ]

    override func viewDidLoad() {
        super.viewDidLoad()

        let size = NSCollectionLayoutSize(
            widthDimension: NSCollectionLayoutDimension.fractionalWidth(1),
            heightDimension: NSCollectionLayoutDimension.estimated(44)
        )
        let item = NSCollectionLayoutItem(layoutSize: size)
        let group = NSCollectionLayoutGroup.horizontal(layoutSize: size, subitem: item, count: 1)

        let section = NSCollectionLayoutSection(group: group)
        section.contentInsets = NSDirectionalEdgeInsets(top: 10, leading: 10, bottom: 10, trailing: 10)
        section.interGroupSpacing = 10

        let headerFooterSize = NSCollectionLayoutSize(
            widthDimension: .fractionalWidth(1.0),
            heightDimension: .absolute(40)
        )
        let sectionHeader = NSCollectionLayoutBoundarySupplementaryItem(
            layoutSize: headerFooterSize,
            elementKind: "SectionHeaderElementKind",
            alignment: .top
        )
        section.boundarySupplementaryItems = [sectionHeader]

        let layout = UICollectionViewCompositionalLayout(section: section)
        collectionView.collectionViewLayout = layout
        collectionView.register(CustomCell.self, forCellWithReuseIdentifier: "CustomCell")
        collectionView.register(HeaderView.self, forSupplementaryViewOfKind: UICollectionView.elementKindSectionHeader, withReuseIdentifier: "HeaderView")
    }

    override func numberOfSections(in collectionView: UICollectionView) -> Int {
        return items.count
    }

    override func collectionView(_ collectionView: UICollectionView, numberOfItemsInSection section: Int) -> Int {
        return items[section].count
    }

    override func collectionView(_ collectionView: UICollectionView, cellForItemAt indexPath: IndexPath) -> UICollectionViewCell {
        let cell = collectionView.dequeueReusableCell(withReuseIdentifier: "CustomCell", for: indexPath) as! CustomCell
        cell.label.text = items[indexPath.section][indexPath.row]
        return cell
    }

    override func collectionView(_ collectionView: UICollectionView, viewForSupplementaryElementOfKind kind: String, at indexPath: IndexPath) -> UICollectionReusableView {
        let headerView = collectionView.dequeueReusableSupplementaryView(ofKind: UICollectionView.elementKindSectionHeader, withReuseIdentifier: "HeaderView", for: indexPath) as! HeaderView
        headerView.label.text = "Header"
        return headerView
    }

    override func viewWillTransition(to size: CGSize, with coordinator: UIViewControllerTransitionCoordinator) {
        super.viewWillTransition(to: size, with: coordinator)
        coordinator.animate(alongsideTransition: { context in
            self.collectionView.collectionViewLayout.invalidateLayout()
        }, completion: nil)
    }

}

HeaderView.swift

import UIKit

class HeaderView: UICollectionReusableView {

    let label = UILabel()

    override init(frame: CGRect) {
        super.init(frame: frame)
        backgroundColor = .magenta

        addSubview(label)
        label.translatesAutoresizingMaskIntoConstraints = false
        label.centerXAnchor.constraint(equalTo: centerXAnchor).isActive = true
        label.centerYAnchor.constraint(equalTo: centerYAnchor).isActive = true
    }

    required init?(coder aDecoder: NSCoder) {
        fatalError("init(coder:) has not been implemented")
    }

}

CustomCell.swift

import UIKit

class CustomCell: UICollectionViewCell {

    let label = UILabel()

    override init(frame: CGRect) {
        super.init(frame: frame)

        label.numberOfLines = 0
        backgroundColor = .orange
        contentView.addSubview(label)

        label.translatesAutoresizingMaskIntoConstraints = false
        label.topAnchor.constraint(equalTo: contentView.topAnchor).isActive = true
        label.leadingAnchor.constraint(equalTo: contentView.leadingAnchor).isActive = true
        label.trailingAnchor.constraint(equalTo: contentView.trailingAnchor).isActive = true
        label.bottomAnchor.constraint(equalTo: contentView.bottomAnchor).isActive = true
    }

    required init?(coder aDecoder: NSCoder) {
        fatalError("init(coder:) has not been implemented")
    }

}

Expected display:

2. Solution for iOS 11+

With Swift 5.1 and iOS 11, you can subclass UICollectionViewFlowLayout and set its estimatedItemSize property to UICollectionViewFlowLayout.automaticSize (this tells the system that you want to deal with autoresizing UICollectionViewCells). You'll then have to override layoutAttributesForElements(in:) and layoutAttributesForItem(at:) in order to set cells width. Lastly, you'll have to override your cell's preferredLayoutAttributesFitting(_:) method and compute its height.

The following complete code shows how to display multiline UILabel inside full-width UIcollectionViewCell (constrained by UICollectionView's safe area and UICollectionViewFlowLayout's insets):

CollectionViewController.swift

import UIKit

class CollectionViewController: UICollectionViewController {

    let items = [
        [
            "Lorem ipsum dolor sit amet.",
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris. Lorem ipsum dolor sit amet, consectetur adipiscing elit.",
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.",
        ],
        [
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt.",
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.",
        ],
        [
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt.",
            "Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.",
            "Lorem ipsum. Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.",
        ]
    ]
    let customFlowLayout = CustomFlowLayout()

    override func viewDidLoad() {
        super.viewDidLoad()

        customFlowLayout.sectionInsetReference = .fromContentInset // .fromContentInset is default
        customFlowLayout.estimatedItemSize = UICollectionViewFlowLayout.automaticSize
        customFlowLayout.minimumInteritemSpacing = 10
        customFlowLayout.minimumLineSpacing = 10
        customFlowLayout.sectionInset = UIEdgeInsets(top: 10, left: 10, bottom: 10, right: 10)
        customFlowLayout.headerReferenceSize = CGSize(width: 0, height: 40)

        collectionView.collectionViewLayout = customFlowLayout
        collectionView.contentInsetAdjustmentBehavior = .always
        collectionView.register(CustomCell.self, forCellWithReuseIdentifier: "CustomCell")
        collectionView.register(HeaderView.self, forSupplementaryViewOfKind: UICollectionView.elementKindSectionHeader, withReuseIdentifier: "HeaderView")
    }

    override func numberOfSections(in collectionView: UICollectionView) -> Int {
        return items.count
    }

    override func collectionView(_ collectionView: UICollectionView, numberOfItemsInSection section: Int) -> Int {
        return items[section].count
    }

    override func collectionView(_ collectionView: UICollectionView, cellForItemAt indexPath: IndexPath) -> UICollectionViewCell {
        let cell = collectionView.dequeueReusableCell(withReuseIdentifier: "CustomCell", for: indexPath) as! CustomCell
        cell.label.text = items[indexPath.section][indexPath.row]
        return cell
    }

    override func collectionView(_ collectionView: UICollectionView, viewForSupplementaryElementOfKind kind: String, at indexPath: IndexPath) -> UICollectionReusableView {
        let headerView = collectionView.dequeueReusableSupplementaryView(ofKind: UICollectionView.elementKindSectionHeader, withReuseIdentifier: "HeaderView", for: indexPath) as! HeaderView
        headerView.label.text = "Header"
        return headerView
    }

}

CustomFlowLayout.swift

import UIKit

final class CustomFlowLayout: UICollectionViewFlowLayout {

    override func layoutAttributesForElements(in rect: CGRect) -> [UICollectionViewLayoutAttributes]? {
        let layoutAttributesObjects = super.layoutAttributesForElements(in: rect)?.map{ $0.copy() } as? [UICollectionViewLayoutAttributes]
        layoutAttributesObjects?.forEach({ layoutAttributes in
            if layoutAttributes.representedElementCategory == .cell {
                if let newFrame = layoutAttributesForItem(at: layoutAttributes.indexPath)?.frame {
                    layoutAttributes.frame = newFrame
                }
            }
        })
        return layoutAttributesObjects
    }

    override func layoutAttributesForItem(at indexPath: IndexPath) -> UICollectionViewLayoutAttributes? {
        guard let collectionView = collectionView else {
            fatalError()
        }
        guard let layoutAttributes = super.layoutAttributesForItem(at: indexPath)?.copy() as? UICollectionViewLayoutAttributes else {
            return nil
        }

        layoutAttributes.frame.origin.x = sectionInset.left
        layoutAttributes.frame.size.width = collectionView.safeAreaLayoutGuide.layoutFrame.width - sectionInset.left - sectionInset.right
        return layoutAttributes
    }

}

HeaderView.swift

import UIKit

class HeaderView: UICollectionReusableView {

    let label = UILabel()

    override init(frame: CGRect) {
        super.init(frame: frame)
        backgroundColor = .magenta

        addSubview(label)
        label.translatesAutoresizingMaskIntoConstraints = false
        label.centerXAnchor.constraint(equalTo: centerXAnchor).isActive = true
        label.centerYAnchor.constraint(equalTo: centerYAnchor).isActive = true
    }

    required init?(coder aDecoder: NSCoder) {
        fatalError("init(coder:) has not been implemented")
    }

}

CustomCell.swift

import UIKit

class CustomCell: UICollectionViewCell {

    let label = UILabel()

    override init(frame: CGRect) {
        super.init(frame: frame)

        label.numberOfLines = 0
        backgroundColor = .orange
        contentView.addSubview(label)

        label.translatesAutoresizingMaskIntoConstraints = false
        label.topAnchor.constraint(equalTo: contentView.topAnchor).isActive = true
        label.leadingAnchor.constraint(equalTo: contentView.leadingAnchor).isActive = true
        label.trailingAnchor.constraint(equalTo: contentView.trailingAnchor).isActive = true
        label.bottomAnchor.constraint(equalTo: contentView.bottomAnchor).isActive = true
    }

    required init?(coder aDecoder: NSCoder) {
        fatalError("init(coder:) has not been implemented")
    }

    override func preferredLayoutAttributesFitting(_ layoutAttributes: UICollectionViewLayoutAttributes) -> UICollectionViewLayoutAttributes {
        let layoutAttributes = super.preferredLayoutAttributesFitting(layoutAttributes)
        layoutIfNeeded()
        layoutAttributes.frame.size = systemLayoutSizeFitting(UIView.layoutFittingCompressedSize, withHorizontalFittingPriority: .required, verticalFittingPriority: .fittingSizeLevel)
        return layoutAttributes
    }

}

Here are some alternative implementations for preferredLayoutAttributesFitting(_:):

override func preferredLayoutAttributesFitting(_ layoutAttributes: UICollectionViewLayoutAttributes) -> UICollectionViewLayoutAttributes {
    let targetSize = CGSize(width: layoutAttributes.frame.width, height: 0)
    layoutAttributes.frame.size = contentView.systemLayoutSizeFitting(targetSize, withHorizontalFittingPriority: .required, verticalFittingPriority: .fittingSizeLevel)
    return layoutAttributes
}

override func preferredLayoutAttributesFitting(_ layoutAttributes: UICollectionViewLayoutAttributes) -> UICollectionViewLayoutAttributes {
    label.preferredMaxLayoutWidth = layoutAttributes.frame.width
    layoutAttributes.frame.size.height = contentView.systemLayoutSizeFitting(UIView.layoutFittingCompressedSize).height
    return layoutAttributes
}

Expected display:

I found a pretty easy solution for that issue: Inside of my CollectionViewCell I got a UIView() which is actually just a background. To get full width I just set the following Anchors

bgView.widthAnchor.constraint(equalToConstant: UIScreen.main.bounds.size.width - 30).isActive = true // 30 is my added up left and right Inset
bgView.topAnchor.constraint(equalTo: topAnchor).isActive = true
bgView.leftAnchor.constraint(equalTo: leftAnchor).isActive = true
bgView.rightAnchor.constraint(equalTo: rightAnchor).isActive = true
bgView.bottomAnchor.constraint(equalTo: bottomAnchor).isActive = true

The "magic" happens in the first line. I set the widthAnchor dynamically to the width of the screen. Also important is to subtract the insets of your CollectionView. Otherwise the cell won't show up. If you don't want to have such a background view, just make it invisible.

The FlowLayout uses the following settings

layout.itemSize = UICollectionViewFlowLayoutAutomaticSize
layout.estimatedItemSize = UICollectionViewFlowLayoutAutomaticSize

Result is a full width sized cell with dynamic height.

WORKING!!! Tested on IOS:12.1 Swift 4.1

I have a very simple solution that just works with no constraint breaking.

My ViewControllerClass

class ViewController: UIViewController {

    @IBOutlet weak var collectionView: UICollectionView!

    let cellId = "CustomCell"

    var source = ["nomu", "when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. ", "t is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using 'Content here, content here', making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for 'lorem ipsum' will uncover many web sites still in their infancy. Various versions have evolved over the years, sometimes by", "Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia,","nomu", "when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. ", "t is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using 'Content here, content here', making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for 'lorem ipsum' will uncover many web sites still in their infancy. Various versions have evolved over the years, sometimes by", "Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia,","nomu", "when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. ", "t is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using 'Content here, content here', making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for 'lorem ipsum' will uncover many web sites still in their infancy. Various versions have evolved over the years, sometimes by", "Contrary to popular belief, Lorem Ipsum is not simply random text. It has roots in a piece of classical Latin literature from 45 BC, making it over 2000 years old. Richard McClintock, a Latin professor at Hampden-Sydney College in Virginia,"]

    override func viewDidLoad() {
        super.viewDidLoad()

        self.collectionView.delegate = self
        self.collectionView.dataSource = self
        self.collectionView.register(UINib.init(nibName: cellId, bundle: nil), forCellWithReuseIdentifier: cellId)

        if let flowLayout = collectionView.collectionViewLayout as? UICollectionViewFlowLayout {
            flowLayout.estimatedItemSize = UICollectionViewFlowLayout.automaticSize
        }

    }

}


extension ViewController: UICollectionViewDelegate, UICollectionViewDataSource {

    func collectionView(_ collectionView: UICollectionView, numberOfItemsInSection section: Int) -> Int {
        return self.source.count
    }

    func collectionView(_ collectionView: UICollectionView, cellForItemAt indexPath: IndexPath) -> UICollectionViewCell {
        guard let cell = collectionView.dequeueReusableCell(withReuseIdentifier: cellId, for: indexPath) as? CustomCell else { return UICollectionViewCell() }
        cell.setData(data: source[indexPath.item])
        return cell
    }


}

CustomCell class:

class CustomCell: UICollectionViewCell {

    @IBOutlet weak var label: UILabel!
    @IBOutlet weak var widthConstraint: NSLayoutConstraint!

    override func awakeFromNib() {
        super.awakeFromNib()
        self.widthConstraint.constant = UIScreen.main.bounds.width
    }

    func setData(data: String) {
        self.label.text = data
    }

    override func systemLayoutSizeFitting(_ targetSize: CGSize, withHorizontalFittingPriority horizontalFittingPriority: UILayoutPriority, verticalFittingPriority: UILayoutPriority) -> CGSize {
        return contentView.systemLayoutSizeFitting(CGSize(width: self.bounds.size.width, height: 1))
    }

}

Main ingredient is the systemLayoutSizeFitting function in Customcell. And also we have to set width of the view inside Cell with constraints.

If you're using iOS 14 or newer, then you can use the UICollectionLayoutListConfiguration API, which makes it possible to use UICollectionView as a single column tableview, including features like horizontal swipe context menus and auto-height cells.

var collectionView: UICollectionView! = nil

override func viewDidLoad() {
    super.viewDidLoad()

    let config = UICollectionLayoutListConfiguration(appearance: .plain)
    let layout = UICollectionViewCompositionalLayout.list(using: config)
    collectionView = UICollectionView(frame: view.bounds, collectionViewLayout: layout)
    collectionView.autoresizingMask = [.flexibleWidth, .flexibleHeight]
    view.addSubview(collectionView)
}

More info, including an example project, about how to configure cells and the data source can be found in this article from Apple: Implementing Modern Collection Views, especially the section that starts with Create a Simple List Layout.

The example projects contains a controller named ConferenceNewsFeedViewController which shows how to configure auto-height cells based on auto-layout.

1. Set estimatedItemSize of your flow layout:

   collectionViewLayout.estimatedItemSize = UICollectionViewFlowLayoutAutomaticSize
   

2. Define a width constraint in the cell and set it to be equal to superview's width:

   class CollectionViewCell: UICollectionViewCell {
       private var widthConstraint: NSLayoutConstraint?
   
       ...
   
       override init(frame: CGRect) {
           ...
           // Create width constraint to set it later.
           widthConstraint = contentView.widthAnchor.constraint(equalToConstant: 0)
       }
   
       override func updateConstraints() {
           // Set width constraint to superview's width.
           widthConstraint?.constant = superview?.bounds.width ?? 0
           widthConstraint?.isActive = true
           super.updateConstraints()
       }
   
       ...
   }
   

Full example

Tested on iOS 11.

On your viewDidLayoutSubviews, set the estimatedItemSize to full width (layout refers to the UICollectionViewFlowLayout object):

func collectionView(_ collectionView: UICollectionView, layout collectionViewLayout: UICollectionViewLayout, referenceSizeForHeaderInSection section: Int) -> CGSize {
    return CGSize(width: collectionView.bounds.size.width, height: 120)
}

On your cell, be sure that your constraints touch both the top and bottom of the cell (the following code uses Cartography to simplify setting the constraints but you can do it with NSLayoutConstraint or IB if you want):

constrain(self, nameLabel, valueLabel) { view, name, value in
        name.top == view.top + 10
        name.left == view.left
        name.bottom == view.bottom - 10
        value.right == view.right
        value.centerY == view.centerY
    }

Voila, you cells will now autogrow in height!

AutoLayout can be used for auto-sizing of cells in CollectionView in 2 easy steps:

1. Enabling dynamic cell sizing

flowLayout.estimatedItemSize = UICollectionViewFlowLayout.automaticSize

2. Have a container view and set the containerView.widthAnchor.constraint from collectionView(:cellForItemAt:)to limit the width of contentView to width of collectionView.

class ViewController: UIViewController, UICollectionViewDataSource {
    ...

    func collectionView(_ collectionView: UICollectionView, cellForItemAt indexPath: IndexPath) -> UICollectionViewCell {
        let cell = collectionView.dequeueReusableCell(withReuseIdentifier: "cellId", for: indexPath) as! MultiLineCell
        cell.textView.text = dummyTextMessages[indexPath.row]
        cell.maxWidth = collectionView.frame.width
        return cell
    }

    ...
}

class MultiLineCell: UICollectionViewCell{
    ....

    var maxWidth: CGFloat? {
        didSet {
            guard let maxWidth = maxWidth else {
                return
            }
            containerViewWidthAnchor.constant = maxWidth
            containerViewWidthAnchor.isActive = true
        }
    }

    ....
}

That's it you'll get the desired result. Refer following gists for full code:

• SelfSizingCollectionViewCellDemo+UILabel.swift
• SelfSizingCollectionViewCellDemo+UITextView.swift

Reference/Credits :

• V8tr's blog post - Collection View Cells Self-Sizing: Step by Step Tutorial
• Another stackoverflow answer

Screenshot:

I also faced with dynamic cell's height issue and could resolve the issue using Autolayout and manual height calculation. No need to use estimated sizes, instantiating or creating cells.

Also this solution provides handling of multiline labels. It's based on calculating of subviews height of all subviews in a cell.

extension CollectionViewController: UICollectionViewDelegateFlowLayout {
    func collectionView(_ collectionView: UICollectionView,
                        layout collectionViewLayout: UICollectionViewLayout,
                        sizeForItemAt indexPath: IndexPath) -> CGSize {
        let contentHorizontalSpaces = collectionLayout.minimumInteritemSpacing
            + collectionLayout.sectionInset.left
            + collectionLayout.sectionInset.right
        let newCellWidth = (collectionView.bounds.width - contentHorizontalSpaces) / 2
        let newHeight = Cell.getProductHeightForWidth(props: data[indexPath.row], width: newCellWidth)
        return CGSize(width: newCellWidth, height: newHeight)
    }
}

UICollectionViewDelegateFlowLayout uses size of the cell which is calculated in getProductHeightForWidth method:

extension Cell {

    class func getProductHeightForWidth(props: Props, width: CGFloat) -> CGFloat {
        // magic numbers explanation:
        // 16 - offset between image and price
        // 22 - height of price
        // 8 - offset between price and title
        var resultingHeight: CGFloat = 16 + 22 + 8
        // get image height based on width and aspect ratio
        let imageHeight = width * 2 / 3
        resultingHeight += imageHeight

        let titleHeight = props.title.getHeight(

            font: .systemFont(ofSize: 12), width: width
        )
        resultingHeight += titleHeight

        return resultingHeight
    }
}

I created a story here: https://volodymyrrykhva.medium.com/uicollectionview-cells-with-dynamic-height-using-autolayout-a4e346b7bd2a

Full code on solution is on GitHub: https://github.com/ascentman/DynamicHeightCells

I have seen many complex answers for cells with dynamic height. However after few google searches i found this simple answer.

collectionView.delegate = self
collectionView.dataSource = self
collectionView.register(UINib(nibName: "LabelOnlyCell", bundle: nil), forCellWithReuseIdentifier: "LabelOnlyCell")
if let collectionViewLayout = collectionView.collectionViewLayout as? UICollectionViewFlowLayout {
   collectionViewLayout.estimatedItemSize = UICollectionViewFlowLayout.automaticSize
}

Important Part

collectionViewLayout.estimatedItemSize = UICollectionViewFlowLayout.automaticSize

LabelOnlyCell class for reference

class LabelOnlyCell: UICollectionViewCell {

@IBOutlet weak var labelHeading: UILabel!
@IBOutlet weak var parentView: UIView!


override func awakeFromNib() {
    super.awakeFromNib()
    // Initialization code
    
    self.parentView.translatesAutoresizingMaskIntoConstraints = false
    self.parentView.widthAnchor.constraint(equalToConstant: UIScreen.main.bounds.width).isActive = true
}

}

Screenshot for reference.

I followed this answer, simple and achieves the goal. Plus it gives me the benefit to adjust my view for iPad unlike the selected answer.

However I wanted the width of the cell to change according to device width, so I did not add a width constraint, and tweaked the preferredLayoutAttributesFitting method to be like this:

override func preferredLayoutAttributesFitting(_ layoutAttributes: UICollectionViewLayoutAttributes) -> UICollectionViewLayoutAttributes {
    let targetSize = CGSize(width: UIScreen.main.bounds.size.width / ((UIDevice.current.userInterfaceIdiom == .phone) ? 1 : 2), height: 0);
    layoutAttributes.frame.size = contentView.systemLayoutSizeFitting(targetSize, withHorizontalFittingPriority: .required, verticalFittingPriority: .fittingSizeLevel);
    
    return layoutAttributes;
}

My solution is lifted from https://www.advancedswift.com/autosizing-full-width-cells/

Add the following inside your Custom Cell Class:

class MyCustomCell: UICollectionViewCell {

    ...

    override func systemLayoutSizeFitting(_ targetSize: CGSize, withHorizontalFittingPriority horizontalFittingPriority: UILayoutPriority, verticalFittingPriority: UILayoutPriority) -> CGSize {
            
            var targetSize = targetSize
            targetSize.height = CGFloat.greatestFiniteMagnitude
            
            let size = super.systemLayoutSizeFitting(targetSize, withHorizontalFittingPriority: .required, verticalFittingPriority: .fittingSizeLevel)
            
            return size
       } 
}

And the following in the ViewDidLoad of the ViewController containing your Collection View:

override func viewDidLoad() {
    super.viewDidLoad()
    
    ...

    let cellWidth = 200 // whatever your cell width is
    
    let layout = myCustomCollectionView.collectionViewLayout
        if let flowLayout = layout as? UICollectionViewFlowLayout {
            flowLayout.estimatedItemSize = CGSize(
                width: cellWidth,
                height: 200 //an estimated height, but this will change when the cell is created
            )
      }
}

This is the simplest/shortest solution I've found.