Chrome Version: 52.0.2743.75
Chrome OS Version: 8350.55.0
Chrome OS Platform: elm

Steps To Reproduce:
(1) Move mouse pointer over Hangouts App contact list
(2)  
(3)

Expected Result:

The contact under the mouse pointer is light gray.

Actual Result:

The contact with light gray flickers between contact under pointer, and some other contact lower down on the list (N-2).  The 'other' contact relative position seems to depend on pointer position within list; when hovering over the upper half of the first contact, there is not other contact. For contact #2, the "other" contact is #3 (N+1).  By the contact #5, the "other" contact is contact #7 (N+2). 

How frequently does this problem reproduce? (Always, sometimes, hard to
reproduce?)
Always.

What is the impact to the user, and is there a workaround? If so, what is
it?

Annoying strange flicker when using Hangouts App.

Please provide any additional information below. Attach a screen shot or
log if possible.