When nesting a list item, there's a visible vertical "jump" of the item (and the whole UI below it). Here's a GIF:

This happens because any <li> element in the WordPress admin inherits a margin-bottom: 6px; from common.css. All that's needed to avoid this unpleasant "jump" is to reset the bottom margin to 0 in the List block editor.scss. /Cc @jasmussen
When nesting a list item, there's a visible vertical "jump" of the item (and the whole UI below it). Here's a GIF:
This happens because any
<li>element in the WordPress admin inherits amargin-bottom: 6px;fromcommon.css. All that's needed to avoid this unpleasant "jump" is to reset the bottom margin to0in the List blockeditor.scss. /Cc @jasmussen