Created attachment 173464 [details]
Two screenshots of the problem

SUMMARY
On Plasma Desktop, in edit mode with "Panel Settings" displayed, the edit menus for the widgets which are near the "Panel Settings" menu, are displayed behind the "Panel Settings" menu and are thus obscured.
STEPS TO REPRODUCE
1. In Plasma desktop, open panel settings by clicking on "Show Panel Configuration".
2. Hover the mouse pointer over the "System Tray" widget (if it is below the "Panel Settings" menu).
N.B.: The same applies for any widget below (the digital clock for example) the "Panel Settings" menu.

OBSERVED RESULT
 The edit menus for the "System Tray" widget will open up behind the "Panel Settings" menu thus obscuring it.

EXPECTED RESULT
 The edit menus for the "System Tray" widget should open up in front of the "Panel Settings" menu thus making the options clickable.

SOFTWARE/OS VERSIONS
Operating System: Arch Linux 
KDE Plasma Version: 6.1.4
KDE Frameworks Version: 6.5.0
Qt Version: 6.7.2
Kernel Version: 6.10.8-arch1-1 (64-bit)
Graphics Platform: Wayland