Reproduction steps:
1. Open the attached 'TestOverlays' project
2. Open the 'SampleScene'
3. Click anywhere in the Scene view and select the Spacebar to open the Overlays menu
4. Click the 'ShortOverlayName' Overlay to display it
Expected result: The display name fits the Overlays window
Actual result: The display name 'Foldout with longer name' expands outside of the black area
Reproducible with: 2021.3.2f1, 2022.1.0b16, 2022.2.0a12
Could not test with: 2019.4.38f1, 2020.3.34f1 (no Overlays available)