Groups dropdown appeared like a bug to me

<img width="1754" height="1212" alt="Image" src="https://github.com/user-attachments/assets/0aa7ca8c-d9a6-4022-a064-f54c919434d2" />

This appeared like a bug to me until I saw “Labelled groups”. I wouldn't expect so much space between groups OR a divider. Just an “empty option” look for spacing seems odd to me. 

Just feedback, if not actionable, please feel free to just close.