Steps to reproduce:

1. Create a new local project without cloud using the Universal 3D template
2. Install the Asset Manager package
3. Open the Asset Manager window (Window > Asset Manager)
4. Collapse the left side panel by clicking the Collapse button
5. Observe the Collapse, Assets, In Project, and Upload button alignment
6. Hover mouse cursor over the Collapse button
7. Observe the Collapse button highlight

Actual results: The Collapse button, Assets, In Project, and Upload buttons become misaligned, the Collapse button becomes bigger making the highlight not cover the whole button, but the highlight overlaps the black separator line

Expected results: All the buttons are aligned, and the button highlights do not overlap with other elements

Reproducible with versions: 1.6.0, 1.7.0 (6000.0.58f1, 6000.2.5f1, 6000.3.0b2)

Tested on (OS): macOS Silicon Sequoia 15.6.1

Notes:

• Does not reproduce when the left panel is expanded (not collapsed)