Misplaced taskbar overflow menu

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Occasional Visitor

I upgraded to Windows 11 from Windows 10 and the taskbar overflow menu is misplaced (bad.png), it's offset a few pixels up and levitating - it's mostly visible on the shadow which is cut at the bottom. If I restart explorer.exe (taskkill /F /IM explorer.exe) it looks much better (good.png) - it has different shape (rounded corners) and shadows all around. Unfortunately whenever I restart my PC it returns back to the rectangle shape with bad position.

From my research online I saw on most screenshots that for others it looks rectangular (no rounded corners) but adjacent to the taskbar and not levitating above.

Thank you.

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