The collapse icon in the Files tab is fine, but in the Outline tab it isn't aligned.
Turn on restricted mode and close/open that vault. The icons are in the correct position.
It seems to be this 4px here in styles.css is affecting the Outline tab instead of only the Files list.
.fn-whitespace-stop-collapsing .collapse-icon {
margin-top: 4px;
}
SYSTEM INFO:
Obsidian version: v1.3.2
Installer version: v1.2.8
Operating system: Windows 10 Pro 10.0.22621
Login status: logged in
Catalyst license: supporter
Insider build toggle: on
Live preview: on
Legacy editor: off
Base theme: light
Community theme: none
Snippets enabled: 0
Restricted mode: off
Plugins installed: 1
Plugins enabled: 1
1: Folder notes v1.2.2