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This might be related: The top image is VS's inspectors when VS is the foreground application:
However, with another application in the foreground and VS still visible, the middle Layer panel is expanded down, replacing the lower panels:
This is reversed when VS is again in the foreground. Maybe it is settings related, but it sure is odd. I have for now refrained from changing any settings other than pertaining to the document size, etc. given the number of unexpected behaviors I am experiencing.
Now take a look at the odd resizing behavior in the captured video:
https://app.screencast.com/e8kzaPwwyohRY
And finally, I somehow ended up like this: and I cannot change it!