Fix nesting logic so it will only nest if hovering over the bottom ha…

…lf of the item

packages/block-editor/src/components/list-view/test/use-list-view-drop-zone.js

@@ -261,4 +261,21 @@ describe( 'getListViewDropTarget', () => {
 
 		expect( target ).toBeUndefined();
 	} );
+
+	it( 'should move below, and not nest when dragging lower than the bottom-most block', () => {
+		const singleBlock = [ { ...blocksData[ 0 ], innerBlockCount: 0 } ];
+
+		// This position is to the right of the block, but below the bottom of the block.
+		// This should result in the block being moved below the bottom-most block, and
+		// not being treated as a nesting gesture.
+		const position = { x: 160, y: 250 };
+		const target = getListViewDropTarget( singleBlock, position );
+
+		expect( target ).toEqual( {
+			blockIndex: 1,
+			clientId: 'block-1',
+			dropPosition: 'bottom',
+			rootClientId: '',
+		} );
+	} );
 } );

packages/block-editor/src/components/list-view/use-list-view-drop-zone.js

@@ -152,7 +152,8 @@ function getNextNonDraggedBlock( blocksData, index ) {
  * inner block.
  *
  * Determined based on nesting level indentation of the current block, plus
- * the indentation of the next level of nesting.
+ * the indentation of the next level of nesting. The vertical position of the
+ * cursor must also be within the block.
  *
  * @param {WPPoint} point        The point representing the cursor position when dragging.
  * @param {DOMRect} rect         The rectangle.
@@ -161,7 +162,10 @@ function getNextNonDraggedBlock( blocksData, index ) {
 function isNestingGesture( point, rect, nestingLevel = 1 ) {
 	const blockIndentPosition =
 		rect.left + nestingLevel * NESTING_LEVEL_INDENTATION;
-	return point.x > blockIndentPosition + NESTING_LEVEL_INDENTATION;
+	return (
+		point.x > blockIndentPosition + NESTING_LEVEL_INDENTATION &&
+		point.y < rect.bottom
+	);
 }
 
 // Block navigation is always a vertical list, so only allow dropping