It’s exactly this. The policies put in place by “healthcare administrators” (MBAs and such with healthcare flavoring, not people that actually know how to care for people’s health like doctors and nurses) are designed to process the most patience in the least amount of face time possible, so that each doctor and nurse can see more patients per day, meaning more office visit fees, meaning higher profit. My dad calls it the “cattle shoot” and I feel that’s a pretty apt analogy. It’s the same general reason that fast food restaurants and pharmacies and department stores are perpetually understaffed: fewer staff members means lower “overhead” costs.
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).