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Yea, G3N-es... I see what you mean now. The margin is moved to the left and visible columns can be reduced.

If we were to close the Files panel/dialog now, everything would return to the preview layout. However, if we adjust the margin in order to inspect or tweak a plugin, the margin appears to get "set" and the previous layout will not be restored when the Files dialog is closed.

Worth pointing out I believe is that the "Files dialog" is just an example. This "horizontal squashing" trait of the Arranger window can be invoked in many scenarios; especially in the case where a tiling window manager is used.

So basically, I find myself asking what benefit the "squash" (I'm just going to keep calling it this...lol) offers? I can't think of any so I tend to want to suggest it just be eliminated? Curious to hear any thoughts.