Thank you for reporting a bug to Unity.
We have reviewed the issue carefully, and in this case, the team has decided to not address this issue. Since this issue is purely cosmetic and has absolutely no impact on the current functionality, users are not expected to overlap States in the state machine layout, the legacy Graph GUI presently being used for the State Machine graphs will eventually be replaced and the risk associated in changing this code, we have decided to not address this cosmetic issue. Thank you for your feedback and understanding.
Today we will be closing this case. Thank you again for taking the time to report this issue, and please let us know if there is anything else that changes the impact or severity of this issue.