Consider the Lorentz group $SO(2,1)$ in 2+1 spacetime dimensions. It's little group for massless particles should be just "$SO(1)$", which is just a trivial group with an identity element. So I expect that the massless particles should not have any propagating degrees of freedom in 2+1 dimensions. In fact, its already true for gravity in 2+1 dimensions that it doesn't have any propagating wave solutions.
But we also know that in 2+1 electromagnetism, the tensor $F_{\mu\nu}$ has 3 independent components, which is in contradiction to what I said earlier. Can someone help me correct my understanding? I am sure I am thinking incorrectly, but precisely can't put finger on what's wrong.