well in Ubuntu budgie 18.04 same settings was no problem. Now my panel width is 
40px and if i increase the size overlap stays. 
Tried to add new empty panel no applets same problem. 
Tried to change scale to 100% and back to 200% have this bug on both scales.

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https://bugs.launchpad.net/bugs/1799369

Title:
  Fullscreen app window hides behind panel about 5px

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