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I believe this was a regression in Gutenberg v10.5.0 RC 1 reported in WordPress/gutenberg#31070 and resolved in WordPress/gutenberg#31073. I double checked on my test site, and this issue is no longer present as of Gutenberg v10.5.2 running on edge stickered sites (and also isn't present in v10.4.1 on a site without the sticker present). Let us know if you see the issue again, and we can re-open the issue.
Steps to reproduce the behavior
What I expected to happen
Group Block UI in Core
What actually happened
Too-wide UI in block inspector.
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