diff --git a/frontend/src/components/EditorLayout.tsx b/frontend/src/components/EditorLayout.tsx
index b36caf74..7252dab4 100644
--- a/frontend/src/components/EditorLayout.tsx
+++ b/frontend/src/components/EditorLayout.tsx
@@ -597,6 +597,7 @@ export default function EditorLayout() {
     setStackStatuses(prev => ({ ...prev, [stackFile]: status }));
   };
 
+  // Stable identity required: captured by buildMenuCtx's memoization and passed as a prop; unstable refs cause descendant re-render churn.
   const refreshLabels = useCallback(async () => {
     if (!isPaid) return;
     try {
diff --git a/frontend/src/components/LabelAssignPopover.tsx b/frontend/src/components/LabelAssignPopover.tsx
deleted file mode 100644
index 64b98944..00000000
--- a/frontend/src/components/LabelAssignPopover.tsx
+++ /dev/null
@@ -1,157 +0,0 @@
-import { useState } from 'react';
-import { Check, Plus } from 'lucide-react';
-import { Popover, PopoverContent, PopoverTrigger } from '@/components/ui/popover';
-import { Button } from '@/components/ui/button';
-import { Input } from '@/components/ui/input';
-import { ScrollArea } from '@/components/ui/scroll-area';
-import { apiFetch } from '@/lib/api';
-import { toast } from '@/components/ui/toast-store';
-import { LabelDot } from './LabelPill';
-import { LABEL_COLORS, MAX_LABELS_PER_NODE, type Label, type LabelColor } from './label-types';
-
-interface LabelAssignPopoverProps {
-    stackName: string;
-    allLabels: Label[];
-    assignedLabelIds: number[];
-    onLabelsChanged: () => void;
-    children: React.ReactNode;
-}
-
-export function LabelAssignPopover({ stackName, allLabels, assignedLabelIds, onLabelsChanged, children }: LabelAssignPopoverProps) {
-    const [open, setOpen] = useState(false);
-    const [creating, setCreating] = useState(false);
-    const [newName, setNewName] = useState('');
-    const [newColor, setNewColor] = useState<LabelColor>('teal');
-    const [saving, setSaving] = useState(false);
-
-    const toggleLabel = async (labelId: number) => {
-        const current = new Set(assignedLabelIds);
-        if (current.has(labelId)) {
-            current.delete(labelId);
-        } else {
-            current.add(labelId);
-        }
-        try {
-            const res = await apiFetch(`/stacks/${encodeURIComponent(stackName)}/labels`, {
-                method: 'PUT',
-                body: JSON.stringify({ labelIds: Array.from(current) }),
-            });
-            if (!res.ok) {
-                const data = await res.json().catch(() => ({}));
-                throw new Error(data?.error || 'Failed to update labels.');
-            }
-            onLabelsChanged();
-        } catch (err: unknown) {
-            toast.error((err as Error)?.message || 'Failed to update labels.');
-        }
-    };
-
-    const createAndAssign = async () => {
-        if (!newName.trim()) return;
-        setSaving(true);
-        try {
-            const res = await apiFetch('/labels', {
-                method: 'POST',
-                body: JSON.stringify({ name: newName.trim(), color: newColor }),
-            });
-            if (!res.ok) {
-                const data = await res.json().catch(() => ({}));
-                throw new Error(data?.error || 'Failed to create label.');
-            }
-            const label: Label = await res.json();
-            const newIds = [...assignedLabelIds, label.id];
-            const assignRes = await apiFetch(`/stacks/${encodeURIComponent(stackName)}/labels`, {
-                method: 'PUT',
-                body: JSON.stringify({ labelIds: newIds }),
-            });
-            if (!assignRes.ok) {
-                const data = await assignRes.json().catch(() => ({}));
-                throw new Error(data?.error || 'Failed to assign label.');
-            }
-            onLabelsChanged();
-            setCreating(false);
-            setNewName('');
-            setNewColor('teal');
-        } catch (err: unknown) {
-            toast.error((err as Error)?.message || 'Failed to create label.');
-        } finally {
-            setSaving(false);
-        }
-    };
-
-    return (
-        <Popover open={open} onOpenChange={setOpen}>
-            <PopoverTrigger asChild>
-                {children}
-            </PopoverTrigger>
-            <PopoverContent
-                className="w-56 p-2 backdrop-blur-[10px] backdrop-saturate-[1.15]"
-                align="start"
-            >
-                <div className="text-xs font-medium text-muted-foreground px-2 py-1">Labels</div>
-                <ScrollArea className="max-h-[200px]">
-                    <div>
-                        {allLabels.map(label => (
-                            <button
-                                key={label.id}
-                                type="button"
-                                className="flex items-center gap-2 w-full px-2 py-1.5 rounded-md text-sm hover:bg-accent/50 transition-colors cursor-pointer"
-                                onClick={() => toggleLabel(label.id)}
-                            >
-                                <LabelDot color={label.color} />
-                                <span className="flex-1 text-left font-mono text-[12px] truncate">{label.name}</span>
-                                {assignedLabelIds.includes(label.id) && (
-                                    <Check className="w-3.5 h-3.5 text-success shrink-0" strokeWidth={1.5} />
-                                )}
-                            </button>
-                        ))}
-                        {allLabels.length === 0 && !creating && (
-                            <div className="text-xs text-muted-foreground px-2 py-2">No labels yet.</div>
-                        )}
-                    </div>
-                </ScrollArea>
-                {creating ? (
-                    <div className="border-t border-border mt-1 pt-2 px-1 space-y-2">
-                        <Input
-                            placeholder="Label name"
-                            value={newName}
-                            onChange={e => setNewName(e.target.value)}
-                            className="h-7 text-xs font-mono"
-                            maxLength={30}
-                            autoFocus
-                            onKeyDown={e => { if (e.key === 'Enter') createAndAssign(); if (e.key === 'Escape') setCreating(false); }}
-                        />
-                        <div className="flex flex-wrap gap-1">
-                            {LABEL_COLORS.map(c => (
-                                <button
-                                    key={c}
-                                    type="button"
-                                    className={`w-5 h-5 rounded-full border-2 transition-colors ${c === newColor ? 'border-foreground' : 'border-transparent'}`}
-                                    style={{ backgroundColor: `var(--label-${c})` }}
-                                    onClick={() => setNewColor(c)}
-                                />
-                            ))}
-                        </div>
-                        <div className="flex gap-1">
-                            <Button size="sm" className="h-6 text-xs flex-1" onClick={createAndAssign} disabled={saving || !newName.trim()}>
-                                {saving ? 'Creating...' : 'Create'}
-                            </Button>
-                            <Button size="sm" variant="ghost" className="h-6 text-xs" onClick={() => setCreating(false)}>
-                                Cancel
-                            </Button>
-                        </div>
-                    </div>
-                ) : allLabels.length < MAX_LABELS_PER_NODE ? (
-                    <button
-                        type="button"
-                        className="flex items-center gap-2 w-full px-2 py-1.5 rounded-md text-xs text-muted-foreground hover:bg-accent/50 transition-colors mt-1 border-t border-border pt-2 cursor-pointer"
-                        onClick={() => setCreating(true)}
-                    >
-                        <Plus className="w-3.5 h-3.5" strokeWidth={1.5} />
-                        Create new label
-                    </button>
-                ) : null}
-            </PopoverContent>
-        </Popover>
-    );
-}
diff --git a/frontend/src/components/ui/context-menu.tsx b/frontend/src/components/ui/context-menu.tsx
index f2810ad9..a9f77071 100644
--- a/frontend/src/components/ui/context-menu.tsx
+++ b/frontend/src/components/ui/context-menu.tsx
@@ -37,6 +37,7 @@ const ContextMenuSubTrigger = React.forwardRef<
 ))
 ContextMenuSubTrigger.displayName = ContextMenuPrimitive.SubTrigger.displayName
 
+// Portal-wrapped so sub-menus escape ancestors with overflow-x-hidden. Keep the Portal.
 const ContextMenuSubContent = React.forwardRef<
   React.ElementRef<typeof ContextMenuPrimitive.SubContent>,
   React.ComponentPropsWithoutRef<typeof ContextMenuPrimitive.SubContent>
diff --git a/frontend/src/components/ui/dropdown-menu.tsx b/frontend/src/components/ui/dropdown-menu.tsx
index 92c10681..76da4450 100644
--- a/frontend/src/components/ui/dropdown-menu.tsx
+++ b/frontend/src/components/ui/dropdown-menu.tsx
@@ -38,6 +38,7 @@ const DropdownMenuSubTrigger = React.forwardRef<
 DropdownMenuSubTrigger.displayName =
   DropdownMenuPrimitive.SubTrigger.displayName
 
+// Portal-wrapped so sub-menus escape ancestors with overflow-x-hidden (e.g. the sidebar kebab container). Keep the Portal.
 const DropdownMenuSubContent = React.forwardRef<
   React.ElementRef<typeof DropdownMenuPrimitive.SubContent>,
   React.ComponentPropsWithoutRef<typeof DropdownMenuPrimitive.SubContent>