Hi @Richard Schenkoske ,
Thanks for reaching out!
Unfortunately, the spacing in the Favorites bar for File Explorer and Microsoft Edge is hardcoded and cannot be changed through any official setting or registry tweak.
If you really need to adjust spacing in Edge, the only practical workaround is using a custom CSS extension for example: Stylus. This lets you inject CSS to reduce padding, but it’s completely unsupported and may break after every browser updates.
Disclaimer: This is a non-Microsoft website. The page appears to be providing accurate, safe information. Watch out for ads on the site that may advertise products frequently classifies as a PUP (Potentially Unwanted Products). Thoroughly research any product advertised on the site before you decide to download and install it.
Hope this clarifies your question! If you have any questions, please feel free to comment. I'll be happy to help!