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Thanks for the screenshot. When zoomed in yes, the panel will cover the project canvas. To move the canvas around hold down the spacebar and your cursor should change to a hand, which will enable you to click and drag the canvas around to see the covered parts.
I'd show you a screenshot but my mouse doesn't show up! But it does work, I use it all the time.
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I am so glad I am not the only one who does not like this feature!