Fixes #25777

src/vs/editor/contrib/zoneWidget/browser/zoneWidget.ts

@@ -275,6 +275,7 @@ export abstract class ZoneWidget extends Widget implements IHorizontalSashLayout
 
 		// Render the widget as zone (rendering) and widget (lifecycle)
 		const viewZoneDomNode = document.createElement('div');
+		viewZoneDomNode.style.overflow = 'hidden';
 		const lineHeight = this.editor.getConfiguration().lineHeight;
 
 		// adjust heightInLines to viewport

src/vs/workbench/parts/debug/browser/exceptionWidget.ts

@@ -33,7 +33,7 @@ export class ExceptionWidget extends ZoneWidget {
 		@IThemeService themeService: IThemeService,
 		@IInstantiationService private instantiationService: IInstantiationService
 	) {
-		super(editor, { showFrame: true, showArrow: true, frameWidth: 1 });
+		super(editor, { showFrame: true, showArrow: true, frameWidth: 1, className: 'exception-widget-container' });
 
 		this._backgroundColor = Color.white;
 

src/vs/workbench/parts/debug/browser/media/exceptionWidget.css

@@ -3,6 +3,10 @@
  *  Licensed under the MIT License. See License.txt in the project root for license information.
  *--------------------------------------------------------------------------------------------*/
 
+.monaco-editor .zone-widget.exception-widget-container {
+	overflow: hidden;
+}
+
 .monaco-editor .zone-widget .zone-widget-container.exception-widget {
 	padding: 6px 10px;
 	white-space: pre-wrap;