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We investigate the continuous-time dynamics of highly-entangling intermediate-scale quantum circuits in the presence of dissipation and decoherence. By compressing the Hilbert space to a time-dependent "corner" subspace that supports faithful representations of the density matrix, we simulate a noisy quantum Fourier transform processor with up to 21 qubits. Our method is efficient to compute with a controllable accuracy the time evolution of intermediate-scale open quantum systems with moderate entropy, while taking into account microscopic dissipative processes rather than relying on digital error models. The circuit size reached in our simulations allows to extract the scaling behaviour of error propagation with the dissipation rates and the number of qubits. Moreover, we show that depending on the dissipative mechanisms at play, the choice of input state has a strong impact on the performance of the quantum algorithm.

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