Chrome Version: 55.0.2883.54
Chrome OS Version: 8872.54.0
Chrome OS Platform: elm
Google Hangouts Extension Version: 2016.1108.1036.1

Steps To Reproduce:
(1) Use Hangouts App
(2) Click the "New conversation" '+' circle to start a new chat

Expected Result:

Profile picture circles next to contact Names.

Actual Result:

Profile picture circles overlap contact Names.

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?

Can't always see full name of contact.
And it looks ugly.

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

See screenshot here:
https://feedback.corp.google.com/product/208/neutron?lView=rd&lReport=17069896477