I'm struggling to see what the issue is.
Did you really need to ask that? You post asking for help, I say I'm struggling to see what the issue is, surely you'd understand that to mean elaboration world be required, no?
Thanks for the fix, not only did the new UI look awful but it messed all my live bookmarks up, shifting them over to the right.
I can see the difference in the images, but the difference is quite minor in that it looks like the new interface is slightly wider spaced on the options menu, which I will reiterate, based on What's in your image, I'm struggling to see the issue. Is there more to it beyond the options menu spacing or something?
Having to move your mouse a centimetre further to click something was definitely worthy of a thread.

Seems the "fix" is now in the current build, all my Chrome installs have gone back to the smaller spacing by themselves this morning.