I can confirm that this looks like a bug in latest Horizon family of themes.
Just need your logo to be higher than menu items.
My test theme had textual logo and this is why I could not replicate.
I can’t quit pinpoint why this happens yet.
The temporary fix can be to add the same kind of “extension” I suggested for Dawn in the topic linked above.
You can’t add it to “Custom CSS”, but you can add a “Custom liquid” section to the Footer group and paste this:
<style>
.menu-list__link:hover {
position:relative;
overflow: visible;
}
.menu-list__link:hover:after {
content: "";
position: absolute;
inset: 0;
transform: scale(1.25) translateY(3.5rem);
z-index: 3;
}
</style>