Thank you for taking time to test that. I see what you are talking about. However, it will sometimes use the top edge of the circular cursor if there are no buttons below it. For example, in “Studio Lite” if you click tutorials, the last button “Scripts II”, if you point at the bottom edge of that button, it will highlight the button while only the top edge of cursor is touching the bottom edge of the button.
And in some cases it works perfectly, for example if you point at the greater-than symbol “>” in front of Workspace or Players in the Explorer window (in Studio Lite), it highlights the “>” button in the center of the circle as it should even though there are several guis touching the cursor above and below it.
The inconsistency is confusing to me and to players that use Xbox. I have not tested it on a PC with a gamepad, or on Play Station. The behavior might be different.