The shell defines a "work area" that is the available desktop space where windows can be automatically placed. So that's the screen minus permanent panels/docks. If your dock is set to auto-hide then it will indeed cover part of the work area where windows (including menus) are allowed to appear.
Solving this for app windows is not possible without disabling auto-hide. But it might be possible to solve for this menu case by changing the stacking order. I don't really know how that would be done in a Wayland session but it does mean the bug can be reassigned back to the dock and shell...
The shell defines a "work area" that is the available desktop space where windows can be automatically placed. So that's the screen minus permanent panels/docks. If your dock is set to auto-hide then it will indeed cover part of the work area where windows (including menus) are allowed to appear.
Solving this for app windows is not possible without disabling auto-hide. But it might be possible to solve for this menu case by changing the stacking order. I don't really know how that would be done in a Wayland session but it does mean the bug can be reassigned back to the dock and shell...