diff --git a/packages/ui/src/blocks/navigation-panel.tsx b/packages/ui/src/blocks/navigation-panel.tsx
index b61a3ad..7c88c2f 100644
--- a/packages/ui/src/blocks/navigation-panel.tsx
+++ b/packages/ui/src/blocks/navigation-panel.tsx
@@ -710,8 +710,8 @@ function NavigationPanelNav({
         )}
         style={{
           top: "var(--navigation-outline-top, 0px)",
-          left: "0px",
-          width: "100%",
+          left: "var(--navigation-outline-left, 0px)",
+          width: "var(--navigation-outline-width, 0px)",
           height: "var(--navigation-outline-height, 0px)",
         }}
       />
@@ -939,7 +939,7 @@ function NavigationPanelNav({
                               className={cn(
                                 "group relative grid min-h-11 w-full grid-cols-[2rem_minmax(0,1fr)] items-center rounded-lg border border-transparent pr-8 text-left text-sm transition-colors max-lg:w-auto max-lg:min-w-max",
                                 childActive
-                                  ? "bg-nextide-tide/[0.07] text-foreground"
+                                  ? "text-foreground max-lg:bg-nextide-tide/[0.07]"
                                   : "text-muted-foreground hover:bg-nextide-panel-strong/70 hover:text-foreground"
                               )}
                               aria-current={childActive ? "page" : undefined}
diff --git a/tests/e2e/qualification.spec.ts b/tests/e2e/qualification.spec.ts
index 6a44c4e..33f14cd 100644
--- a/tests/e2e/qualification.spec.ts
+++ b/tests/e2e/qualification.spec.ts
@@ -541,6 +541,23 @@ test("navigation branches keep destinations and create actions distinct", async
   ).toBeVisible()
   await report.click()
   await expect(report).toHaveAttribute("aria-current", "page")
+  await expect(report).toHaveCSS("background-color", "rgba(0, 0, 0, 0)")
+  const selection = navigation.locator('[data-slot="navigation-panel-selection"]')
+  await expect
+    .poll(async () => {
+      const [reportBox, selectionBox] = await Promise.all([
+        report.boundingBox(),
+        selection.boundingBox(),
+      ])
+      if (!reportBox || !selectionBox) return 100
+      return Math.max(
+        Math.abs(reportBox.x - selectionBox.x),
+        Math.abs(reportBox.y - selectionBox.y),
+        Math.abs(reportBox.width - selectionBox.width),
+        Math.abs(reportBox.height - selectionBox.height)
+      )
+    })
+    .toBeLessThan(1)
 
   await navigation.getByRole("button", { name: "Create campaign" }).click()
   await expect(
@@ -575,6 +592,7 @@ test("navigation branches keep destinations and create actions distinct", async
   await expect(report).toHaveAttribute("aria-current", "page")
 
   await page.setViewportSize({ width: 390, height: 900 })
+  await expect(report).not.toHaveCSS("background-color", "rgba(0, 0, 0, 0)")
   const action = navigation.getByRole("button", { name: "Create campaign" })
   const disclosure = navigation.getByRole("button", {
     name: "Collapse Campaigns",