Reproduction steps:
1. Open the attached project "ReproProj"
2. Open the “/Assets/Scenes/SampleScene.unity” Scene
3. Make sure that the Game window is set as Simulator and a small device is selected i.e. Google Pixel 5
4. Right-click on any item in the Project window

Expected result: The Drop-down is fully shown and does not need scrolling
Actual result: A Drop-down that requires scrolling is seen

Reproducible with: 2023.2.0a15, 2023.2.0b9, 2023.3.0a5
Not reproducible with: 2021.3.30f1, 2022.3.9f1, 2023.1.13f1, 2023.2.0a14

Reproducible on: Windows 10 Enterprise 21H2
Not reproducible on: No other environment tested