Bug: Favorites without expansion space

Summary of bug goes here.
When adding external files to Favorites, it is necessary to drop the item at the bottom of the list and then move it into its position. If the file list becomes long, there is no space between the end of Favorites and the start of Bookmarks in which you can drop your new item.

Software version: 4.0c Beta 1.
Reported by MJ Smith.
Forum link: https://logos.vanillacommunities.com/forums/t/14475.aspx
Status: confirmed