Output Offset API is offset in the whole cell.

src/vs/workbench/contrib/notebook/browser/view/renderers/backLayerWebView.ts

@@ -322,9 +322,7 @@ export class BackLayerWebView extends Disposable {
 	shouldUpdateInset(cell: CodeCellViewModel, output: IOutput, cellTop: number) {
 		let outputCache = this.insetMapping.get(output)!;
 		let outputIndex = cell.outputs.indexOf(output);
-
-		let outputOffsetInOutputContainer = cell.getOutputOffset(outputIndex);
-		let outputOffset = cellTop + cell.layoutInfo.editorHeight + outputOffsetInOutputContainer;
+		let outputOffset = cellTop + cell.getOutputOffset(outputIndex);
 
 		if (outputOffset === outputCache.cacheOffset) {
 			return false;
@@ -339,8 +337,7 @@ export class BackLayerWebView extends Disposable {
 			let id = outputCache.outputId;
 			let outputIndex = item.cell.outputs.indexOf(item.output);
 
-			let outputOffsetInOutputContainer = item.cell.getOutputOffset(outputIndex);
-			let outputOffset = item.cellTop + item.cell.layoutInfo.outputContainerOffset + outputOffsetInOutputContainer;
+			let outputOffset = item.cellTop + item.cell.getOutputOffset(outputIndex);
 			outputCache.cacheOffset = outputOffset;
 
 			return {

src/vs/workbench/contrib/notebook/browser/view/renderers/codeCell.ts

@@ -263,8 +263,7 @@ export class CodeCell extends Disposable {
 
 		if (result.shadowContent) {
 			this.viewCell.selfSizeMonitoring = true;
-			let editorHeight = this.viewCell.layoutInfo.editorHeight;
-			this.notebookEditor.createInset(this.viewCell, currOutput, result.shadowContent, editorHeight + this.viewCell.getOutputOffset(index));
+			this.notebookEditor.createInset(this.viewCell, currOutput, result.shadowContent, this.viewCell.getOutputOffset(index));
 		} else {
 			DOM.addClass(outputItemDiv, 'foreground');
 		}

src/vs/workbench/contrib/notebook/browser/viewModel/codeCellViewModel.ts

@@ -193,8 +193,8 @@ export class CodeCellViewModel extends BaseCellViewModel implements ICellViewMod
 		}
 
 		this._ensureOutputsTop();
-
-		return this._outputsTop!.getAccumulatedValue(index - 1);
+		const offset = this._outputsTop!.getAccumulatedValue(index - 1);
+		return this.layoutInfo.outputContainerOffset + offset;
 	}
 
 	spliceOutputHeights(start: number, deleteCnt: number, heights: number[]) {