style.scss

.components-popover.block-editor-block-popover {
	z-index: z-index(".block-editor-block-popover");
	position: absolute;
	// Shouldn't be needed but it looks
	// like the popover is impacted by the block gap margin.
	margin: 0 !important;

	// Allow clicking through the toolbar holder.
	pointer-events: none;

	.components-popover__content {
		margin: 0 !important;
		min-width: auto;
		width: max-content;
		overflow-y: visible;
	}

	// Enable pointer events for the toolbar's content.
	&:not(.block-editor-block-popover__inbetween, .block-editor-block-popover__drop-zone) .components-popover__content {
		* {
			pointer-events: all;
		}
	}
}

.components-popover.block-editor-block-popover__inbetween {
	// Disable pointer events for dragging and dropping.
	// Without this the insertion point interferes with the
	// drop zone.
	pointer-events: none;

	* {
		pointer-events: none;
	}

	// Re-enable pointer events when the inbetween inserter has a '+' button.
	// Needs specificity, do not simplify.
	.is-with-inserter {
		pointer-events: all;

		* {
			pointer-events: all;
		}
	}
}


.components-popover.block-editor-block-popover__drop-zone {
	// Disable pointer events for dragging and dropping.
	// This drop zone is fully presentational, the actual DnD implementation is handled elsewhere.
	* {
		pointer-events: none;
	}

	.block-editor-block-popover__drop-zone-foreground {
		position: absolute;
		inset: 0;
		background-color: var(--wp-admin-theme-color);
		border-radius: 2px;
	}
}