Two different issues here - ATC saying your ADSB is having an issue means you need to look at your transponder, the issue is there. They are seeing the "output" of your airplane from your transponder carrying your ADSB information out to the world.
Traffic cutting out is on the "inbound" side coming to your airplane, which is through the ADSB receiver, and may not be a problem within your airplane. Traffic on your screen comes from two different sources, either direct from the aircraft itself (displays ALL the time, as long as the airplane is close enough to be in range) and also from the ground-based ADSB uplink (limited to FAA/ATC being able to "see" that airplane, and retransmit its position back to you).
In the bottom right of your map screen you will see "ADSB OK" or "ADSB Partial", which tells you what information you are receiving. "OK" means it is receiving both transponders of other aircraft directly AND the ground re-transmit of data, while "ADSB Partial" or "ADSB No-Radar" means it has lost contact with the ground (FAA/ATC) retransmitted data and is displaying ONLY aircraft that it can see directly from the other aircrafts transponder.
If an aircraft transponder is weak or far enough away that you can't see it directly, and you are getting the ground re-transmitted data, that aircraft will show up on your screen. If you then "lose" the signal from the ground station you will see the display change from "ADSB OK" to "ADSB Partial" or "ADSB No Radar" (depending on software version) and the traffic target will disappear.
As to your original question - yes, a ground plane too small will result in a low-power output transponder signal, which definitely can cause the FAA/ATC to sometimes lose your signal.