• VSCode Version: Code 1.19.0 (816be67, 2017-12-14T09:51:12.123Z)
• OS Version: Darwin x64 16.7.0
• Extensions:

(7 theme extensions excluded)

Steps to Reproduce:

1. Resize VS Code window so it occupies most but not all, of the display.
2. Click on bottom left "action" (gear icon) menu because it has
   an indicator on it (I'd just updated and it was the restart button).
3. Menu draws as a drop down but is clipped due to lack of space. See arrow at bottom of menu indicating it can scroll.
4. Attempt to scroll menu clicking on arrow and usual MacOS pointer motion. Menu doesn't scroll.
5. Resize window to give more room below (effectively moving the gear icon up a little). Click gear icon and see full menu.

The menu display changes location at different window sizes, which really means available space for the menu's height. With a slightly larger window size the menu renders itself above and to the right of the gear icon. Reducing the window height a little has it render as a drop-down (below) but with insufficient height to display the full menu and adds the non-functioning scroll arrow.

Reproduces without extensions: Yes