Created attachment 174802 [details] It seems like the file highlight doesn't recognize the panel. The attachment shows that that file continues to be highlighted when the cursor goes straight from the file onto the panel.
I'm pretty sure that the issue is that the Panel doesn't communicate to the highlighted file that it's the Panel that is being highlighted. For the issue to be replicated, you must move the cursor from a highlighted file to the Panel without having a single frame with the cursor over that small empty space between the two subjects.
Can reproduce the issue.
Created attachment 185228 [details] Issue on Plasma 6.4.5 The bug got worse now. The item next to the panel that was hovered over by the pointer remain highlighted regardless of speed.
Indeed, I can reproduce it now on today's git master.
Fixed for me on 6.5.2. Looks like it was https://invent.kde.org/plasma/plasma-desktop/-/commit/8c1a3811f864964d7c9ff0ba7a41961728e69800
Cool, thanks for checking on it!