fix #52095

src/vs/workbench/browser/parts/editor/editorDropTarget.ts

@@ -343,16 +343,19 @@ class DropOverlay extends Themable {
 	}
 
 	private doPositionOverlay(options: { top: string, left: string, width: string, height: string }): void {
-		this.overlay.style.top = options.top;
-		this.overlay.style.left = options.left;
-		this.overlay.style.width = options.width;
 
+		// Container
 		const offsetHeight = this.getOverlayOffsetHeight();
 		if (offsetHeight) {
-			this.overlay.style.height = `calc(${options.height} - ${offsetHeight}px)`;
+			this.container.style.height = `calc(100% - ${offsetHeight}px)`;
 		} else {
-			this.overlay.style.height = options.height;
+			this.container.style.height = '100%';
 		}
+
+		// Overlay
+		this.overlay.style.top = options.top;
+		this.overlay.style.left = options.left;
+		this.overlay.style.width = options.width;
 	}
 
 	private getOverlayOffsetHeight(): number {