[Updated 08-04-2021]: Mozilla has now agreed on a compromise for compact mode. With the change in design, everyone who currently uses compact mode will continue to be able to use it.
If you are not currently using the compact mode, you will have to take a detour. Search for the browser.compactmode.show via about:config (enter it in the address line) and set it to True. After restarting the browser, the compact mode (compact) will appear again in the setting "Customize toolbar" (right-click in the tab bar). (via)
[Original 17-03-2021]: The new Proton design in Firefox takes up a lot of space. Nevertheless, the developers came up with the idea of removing the compact mode for viewing. We reported about it. This triggered a violent wave of protests. A solution has now been found.
Compared to the Chromium browsers, the Firefox with the new Proton design requires more space in the upper area. That has now been corrected with the new Nightly. A total of 8 pixels have been saved in height. Here's a comparison.
Furthermore, the topic of removing compact mode has probably also been filed. It was understood that the calculations made by the Mozilla team in their post were incorrect. With a right-click in the tab bar -> customize toolbar -> density below you can still choose between compact, normal (now 8 px reduced) and touch.
Sometimes constructive criticism and good suggestions are worthwhile. Here again a comparison to the current Microsoft Edge. As you can see, you have now reached the same height as a result of the change. These changes are still in the nightly and will then be available to everyone with version 88 in April.
Source: Bugzilla
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