diff --git a/packages/ui/src/components/model-picker/ModelPickerList.tsx b/packages/ui/src/components/model-picker/ModelPickerList.tsx
index 555a9eb6..4fc9d0e4 100644
--- a/packages/ui/src/components/model-picker/ModelPickerList.tsx
+++ b/packages/ui/src/components/model-picker/ModelPickerList.tsx
@@ -500,7 +500,7 @@ export const ModelPickerList: React.FC<ModelPickerListProps> = ({
   }, [disabled, flatModelList, moveSelection, onActiveKeyDown, onEscape, onSelect, onVariantKey, selectionStore]);
 
   const headerClassName = cn(
-    'typography-micro font-semibold text-muted-foreground uppercase tracking-wider flex items-center gap-2 -mx-1 px-3 py-1.5 border-b border-border/30',
+    'typography-micro font-semibold text-muted-foreground uppercase tracking-wider flex items-center gap-2 px-2 py-1.5',
     stickyHeaders && 'sticky top-0 z-10 [background:linear-gradient(var(--surface-elevated),var(--surface-elevated)),linear-gradient(var(--surface-background),var(--surface-background))]',
     sectionHeaderClassName,
   );
@@ -638,7 +638,7 @@ export const ModelPickerList: React.FC<ModelPickerListProps> = ({
       </div>
 
       <ScrollableOverlay ref={scrollRef} outerClassName={maxHeightClassName} className="overlay-scrollbar-target--no-gutter" style={maxHeightStyle}>
-        <div className="p-1">
+        <div className="px-1">
           {includeNotSelected ? (
             <>
               <button
diff --git a/packages/ui/src/components/ui/dropdown-menu.tsx b/packages/ui/src/components/ui/dropdown-menu.tsx
index 942fa3dd..124ac39b 100644
--- a/packages/ui/src/components/ui/dropdown-menu.tsx
+++ b/packages/ui/src/components/ui/dropdown-menu.tsx
@@ -124,7 +124,7 @@ function DropdownMenuContent({
         align={align}
         side={side}
         alignOffset={alignOffset}
-        className={cn("z-50", positionerClassName)}
+        className={cn("app-region-no-drag z-50", positionerClassName)}
       >
         <BaseMenu.Popup
           data-slot="dropdown-menu-content"
@@ -134,7 +134,7 @@ function DropdownMenuContent({
             ...style,
           }}
           className={cn(
-            "transition-all duration-150 ease-out data-[starting-style]:opacity-0 data-[starting-style]:scale-95 data-[ending-style]:opacity-0 data-[ending-style]:scale-95 z-50 max-h-[var(--available-height)] min-w-[8rem] origin-[var(--transform-origin)] overflow-visible rounded-xl p-1 shadow-[inset_0_1px_0_0_rgba(255,255,255,0.8),inset_0_0_0_1px_rgba(0,0,0,0.04),0_0_0_1px_rgba(0,0,0,0.10),0_1px_2px_-0.5px_rgba(0,0,0,0.08),0_4px_8px_-2px_rgba(0,0,0,0.08),0_12px_20px_-4px_rgba(0,0,0,0.08)] dark:shadow-[inset_0_1px_0_0_rgba(255,255,255,0.12),inset_0_0_0_1px_rgba(255,255,255,0.08),0_0_0_1px_rgba(0,0,0,0.36),0_1px_1px_-0.5px_rgba(0,0,0,0.22),0_3px_3px_-1.5px_rgba(0,0,0,0.20),0_6px_6px_-3px_rgba(0,0,0,0.16)]",
+            "app-region-no-drag transition-all duration-150 ease-out data-[starting-style]:opacity-0 data-[starting-style]:scale-95 data-[ending-style]:opacity-0 data-[ending-style]:scale-95 z-50 max-h-[var(--available-height)] min-w-[8rem] origin-[var(--transform-origin)] overflow-visible rounded-xl p-1 shadow-[inset_0_1px_0_0_rgba(255,255,255,0.8),inset_0_0_0_1px_rgba(0,0,0,0.04),0_0_0_1px_rgba(0,0,0,0.10),0_1px_2px_-0.5px_rgba(0,0,0,0.08),0_4px_8px_-2px_rgba(0,0,0,0.08),0_12px_20px_-4px_rgba(0,0,0,0.08)] dark:shadow-[inset_0_1px_0_0_rgba(255,255,255,0.12),inset_0_0_0_1px_rgba(255,255,255,0.08),0_0_0_1px_rgba(0,0,0,0.36),0_1px_1px_-0.5px_rgba(0,0,0,0.22),0_3px_3px_-1.5px_rgba(0,0,0,0.20),0_6px_6px_-3px_rgba(0,0,0,0.16)]",
             className
           )}
           {...props}