This bug is already fixed in Places panel of Dolphin (see bug 156678),
but the Places panels of file open/save dialogs are still affected.
STEPS TO REPRODUCE
1. open Kate
2. type anything
3. press ctrl+s to open the save dialog
4. click on Home in the side bar ("Home" place is highlighted as expected)
5. open any folder in Home
"Home" is still highlighted in the Places panel
Highlight place only when it is displayed
Operating System: KDE neon Unstable Edition
KDE Plasma Version: 5.20.80
KDE Frameworks Version: 5.77.0
Qt Version: 5.15.1
A possibly relevant merge request was started @ https://invent.kde.org/frameworks/kio/-/merge_requests/234
Git commit 7817692f3e02d13d8570027d81369635548398c4 by Méven Car.
Committed on 30/11/2020 at 06:42.
Pushed by meven into branch 'master'.
Places view: highlight place only when it is displayed
Related: bug 156678
M +6 -1 src/filewidgets/kfileplacesview.cpp