revert editor changes and disable transformations

src/vs/editor/browser/view.ts

@@ -215,7 +215,6 @@ export class View extends ViewEventHandler {
 
 		if (overflowWidgetsDomNode) {
 			overflowWidgetsDomNode.appendChild(this._contentWidgets.overflowingContentWidgetsDomNode.domNode);
-			overflowWidgetsDomNode.appendChild(this._overlayWidgets.getDomNode().domNode);
 		} else {
 			this.domNode.appendChild(this._contentWidgets.overflowingContentWidgetsDomNode);
 		}

src/vs/workbench/contrib/preferences/browser/keybindingsEditor.ts

@@ -485,6 +485,7 @@ export class KeybindingsEditor extends EditorPane implements IKeybindingsEditorP
 				multipleSelectionSupport: false,
 				setRowLineHeight: false,
 				openOnSingleClick: false,
+				transformOptimization: false // disable transform optimization as it causes the editor overflow widgets to be mispositioned
 			}
 		)) as WorkbenchTable<IKeybindingItemEntry>;