Water Surface overlay bug

I’m having this weird bug where the overlay on “Add Component” is over my surface type bar. I can’t click under it and when I try to add anything it just stacks on top of the surface bar and everything becomes a mess. I don’t know what to do.

This looks like Editor UI bug (element reporting wrong height to the UI system). Updating to a newer editor version helps sometimes, but if not then it would best to report it directly to Unity QA.