SUMMARY
Current Edit Mode is great, but I would like to suggest a change: Move the panel and panel settings inside the desktop preview.

Reasons for the change:

1. If a user has a small panel, you can see the issue with the size of the desktop in the attached SS

2. If a user is using a verbose language like German, you can see the issue with the size of the desktop in the attached SS. Small desktop and double row of top pane. This way, it should always be in 1 row (at least in a lot fewer cases it would need to be in 2 rows, for German it works up to 200% scale on 4k monitor). It can be moved outside of desktop preview to the top of the monitor to gain even more space.

3. There would be less shifting of desktop around (Only when widgets menu is opened/closed). As it is now, when user opens panel settings, desktop moves, when user changes panel position desktop moves, etc... It would be more efficient and current animations are not super smooth (at least on my PC)

4. Panel is part of the desktop so it logically makes sense for it to be displayed on the desktop preview rather than outside of it

SOFTWARE/OS VERSIONS
Operating System: Arch Linux 
KDE Plasma Version: 6.2.3
KDE Frameworks Version: 6.7.0
Qt Version: 6.8.0
Kernel Version: 6.11.6-arch1-1 (64-bit)
Graphics Platform: Wayland