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Thinking and Used tools are both auxiliary trace rows, but the thread list was applying the same large gap used between full chat turns. That made alternating Thinking / Used tools sequences look uneven and too airy. Move row spacing from a fixed flex gap to per-row margins: full chat turns keep mt-5, while consecutive auxiliary rows use mt-2. Add coverage for Thinking -> Used tools -> Thinking spacing. Co-authored-by: Cursor <cursoragent@cursor.com>