It looks like the png is getting word wrapped. Line spacing is so large that the png on the second line is getting pushed into the space of the icon below, and the icon below is given a higher Z value, so it goes over it. The different font has a different letter width and can influence the line spacing by being taller than the original font.
See if you can find an option to reduce line spacing or an option to increase icon spacing (vertical or horizontal). I would expect these to be advanced settings though. Iirc, most Linux desktops don’t use ellipses on long names, like some other operating systems (macOS iirc).
The recommendation changed from car lengths to seconds decades ago, but wasn’t well communicated fwict. I learned car lengths from my dad and then seconds when I got my motorcycle endorsement.
If everyone were leaving 2 seconds of space, it also reduces stop and go traffic that is caused, or at least exacerbated, by the traffic wave phenomenon. But that’s even less well socialized.