Deformation and breakup of droplets in confined shear flows have been attracting increasing attention from the research community over the past few years, as attributable to their implications in microfluidics and emulsion processing. Reported results in this regard have demonstrated that the primary effect of confinement happens to be the inception of complex oscillating transients, monotonic variation of droplet deformation, and droplet stabilization against breakup, as attributable to wall-induced distortion of the flow field. In sharp contrast to these reported findings, here, we show that a nonintuitive nonmonotonic droplet deformation may occur in a confined shear flow, under the influence of an external electric field. In addition, we demonstrate that the orientation angle of a droplet may either increase or decrease with the domain confinement under the influence of an electric field, whereas the same trivially decreases with the increase in degree of confinement in the absence of any electrical effects. Unlike the typical oscillatory transients observed in microconfined shear flows, we further bring out the possibility of an electrohydrodynamically induced dampening effect in the oscillation characteristics, as governed by a specific regime of the relevant dimensionless electrical parameters. Our results reveal that instead of arresting droplet deformation, the unique hydrodynamics of microconfined shear flow may augment the tendency of droplet breakup, and is likely to alter the droplet breakup mode from midpoint pinching to edge pinching at high electric field strength. These results may bear far reaching implications in a wide variety of applications ranging from the processing of emulsions to droplet based microfluidic technology.