Navigation: Enable even more compact setup state. (#37089)

packages/block-library/src/navigation/editor.scss

@@ -304,7 +304,6 @@ $color-control-label-height: 20px;
 
 // Selected state.
 .wp-block-navigation-placeholder__controls {
-	padding: $grid-unit-10;
 	border-radius: $radius-block-ui;
 	background-color: $white;
 	box-shadow: inset 0 0 0 $border-width $gray-900;
@@ -313,11 +312,7 @@ $color-control-label-height: 20px;
 	display: none;
 	position: relative;
 	z-index: 1;
-
-	// Adjust padding for when shown horizontally.
-	.is-large & {
-		padding: $grid-unit-05 $grid-unit-10;
-	}
+	padding: $grid-unit-05 $grid-unit-10;
 
 	// If an ancestor has a text-decoration property applied, it is inherited regardless of
 	// the specificity of a child element. Only pulling the child out of the flow fixes it.
@@ -330,9 +325,19 @@ $color-control-label-height: 20px;
 		display: flex;
 	}
 
-	// Show stacked for the vertical navigation, or small placeholders.
-	.is-small &,
+	// Hide a few elements in medium size placeholders.
+	// @todo: part of the code here will be irrelevant if https://github.com/WordPress/gutenberg/pull/36775 lands.
 	.is-medium & {
+		.wp-block-navigation-placeholder__actions__indicator,
+		.wp-block-navigation-placeholder__actions__indicator + hr,
+		.wp-block-navigation-placeholder__actions > :nth-last-child(3), // Add all pages.
+		.wp-block-navigation-placeholder__actions > :nth-last-child(2) { // hr separator after it.
+			display: none;
+		}
+	}
+
+	// Show stacked for the vertical navigation, or small placeholders.
+	.is-small & {
 		.wp-block-navigation-placeholder__actions {
 			flex-direction: column;
 		}
@@ -366,6 +371,11 @@ $color-control-label-height: 20px;
 	}
 }
 
+// Keep as row for medium.
+.wp-block-navigation .components-placeholder.is-medium .components-placeholder__fieldset {
+	flex-direction: row !important;
+}
+
 .wp-block-navigation-placeholder__actions {
 	display: flex;
 	font-size: $default-font-size;