One of the problems highlighted by users (forum post) regarding the improvements we can make on the navigation block is that the options inside the plugin types on the navigation block get cluttered to the left side of the block, making it difficult for users to use the options.

Current left spacing in the plugins directory (all yellow space is unnecessary):

Left spacing in the Moodle sandbox using the classic theme:

This issue will help as well to avoid elements getting cluttered MDLSITE-7447

The proposal would be to eliminate the space highlighted in yellow.