After the v1.0 update, Folder/Outline Text with dropdowns (Folders, Headings with Sub-Headings) are no longer directly vertically inline. Instead, the dropdown is directly vertically inline. This creates visual difficulty in determining what is or isn’t on an indentation.
That is, visually it looks like Items without a dropdown, and items with a dropdown, are on two different indentation levels, when in actuality they are on the same level.
Another Explorer Screenshot: