Workaround

Author: yaira2

src/Files.App/UserControls/Toolbar.xaml

@@ -72,7 +72,8 @@
 			Grid.Column="0"
 			HorizontalAlignment="Left"
 			x:Load="{x:Bind ViewModel.InstanceViewModel.IsPageTypeNotHome, Mode=OneWay}"
-			DefaultLabelPosition="Right">
+			DefaultLabelPosition="Right"
+			IsDynamicOverflowEnabled="{x:Bind ViewModel.IsDynamicOverflowEnabled, Mode=OneWay}">
 			<CommandBar.PrimaryCommands>
 
 				<!--  New Item  -->

src/Files.App/ViewModels/UserControls/NavigationToolbarViewModel.cs

@@ -139,6 +139,9 @@ public sealed partial class NavigationToolbarViewModel : ObservableObject, IAddr
 		private bool _IsCommandPaletteOpen;
 		public bool IsCommandPaletteOpen { get => _IsCommandPaletteOpen; set => SetProperty(ref _IsCommandPaletteOpen, value); }
 
+		private bool _IsDynamicOverflowEnabled;
+		public bool IsDynamicOverflowEnabled { get => _IsDynamicOverflowEnabled; set => SetProperty(ref _IsDynamicOverflowEnabled, value); }
+		
 		private bool _IsUpdating;
 		public bool IsUpdating { get => _IsUpdating; set => SetProperty(ref _IsUpdating, value); }
 
@@ -257,6 +260,10 @@ public List<ListedItem>? SelectedItems
 				{
 					OnPropertyChanged(nameof(CanExtract));
 					OnPropertyChanged(nameof(HasAdditionalAction));
+
+					// Workaround to ensure the overflow button is only displayed when there are overflow items
+					IsDynamicOverflowEnabled = false;
+					IsDynamicOverflowEnabled = true;
 				}
 			}
 		}