Unable to reproduce the issue on mac 10.13.3 using chrome reported version #69.0.3486.0 and latest canary #69.0.3488.0.

Attached a screen cast for reference.

Following are the steps followed to reproduce the issue.
------------
1. Navigated to www.chromium.org and opened developer tools.
2. Attempted to click a navigation item.
3. Observed that the cursor clicked in the correct position as expected.

luke@ - Could you please check the issue on latest canary #69.0.3488.0 by creating a new profile without any apps and extensions and please let us know if the issue still persist or not. Also please check the attached screen cast and please let us know if anything missed from our end. 

Thanks...!!

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	862861.mp4 2.1 MB View Download

Canary works fine, so does a new profile on chrome dev unless I install any developer tool extension..

If I enable any one of my dev-tool extensions, the problem occurs while undocked with
  - Augury
  - React Dev Tools
  - Vue Dev tools

1. Download a developer tool extension
    - https://chrome.google.com/webstore/detail/augury/elgalmkoelokbchhkhacckoklkejnhcd
    - https://chrome.google.com/webstore/detail/react-developer-tools/fmkadmapgofadopljbjfkapdkoienihi?hl=en
2. Go to chrome://extensions and open dev tools, the top menu should not function correctly since extensions are enabled
3. Disable all of the extensions
4. Launch dev-tools, the issue should no longer be there.
5. Re-enable any of the extensions and the issue should re-introduces

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	devtools-with-ext.mov 2.4 MB View Download

Thank you for providing more feedback. Adding the requester to the cc list.

For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot

Unable to reproduce the issue on mac 10.13.3 using chrome reported version #69.0.3486.0.

Attached a screen cast for reference.

Following are the steps followed to reproduce the issue.
------------
1. Downloaded a developer tool extension
    - https://chrome.google.com/webstore/detail/augury/elgalmkoelokbchhkhacckoklkejnhcd
2. Navigated to chrome://extensions, enabled the augury extension and opened dev tools(undocked).
3. Observed that the top menu functioned correctly as expected.

luke@ - Could you please check the attached screen cast and please let us know if anything missed from our end.

Thanks...!!

Had the same issue on Mac OS X 10.12.6 with Chrome Canary Version 69.0.3489.0 (Official Build) canary (64-bit)

Identified that it was related to the Vulcan by Firebase extension
ID: oippbnlmebalopjbkemajgfbglcjhnbl

Once deactivated, no cursor vertical offset for mouse cursor

Deleted: Screen Shot 2018-07-13 at 09.10.24.png 58.9 KB

	Screen Shot 2018-07-13 at 09.10.24.png 58.9 KB View Download

On my main profile, it seems adblock was also causing this (along side several other extensions).

I renamed /Users/<name>/Library/Application Support/Google/Chrome to Chrome-old, relaunched chrome and signed back in and it seems to work perfectly fine once everything synced (with the exact same extensions). Yet before I could reproduce on a new profile..

Not sure what happened here..

Thank you for providing more feedback. Adding the requester to the cc list.

For more details visit https://www.chromium.org/issue-tracking/autotriage - Your friendly Sheriffbot

Unable to reproduce the issue on mac 10.13.3 using chrome reported version #69.0.3486.0 and latest canary #69.0.3489.0 as per comment #7. Observed that the top menu functioned correctly as expected.

Hence, removing the Needs-Bisect label and requesting someone from Platform>DevTools team to please have a look into the issue.

Thanks...!!

As per comment#10, as the issue is not reproducible at TE end, adding 'TE-NeedsTriageHelp' label and requesting the appropriate team to look into the issue and help in further triaging.

Thanks.!  

I believe that this issue and its causes are the same (dupe) as https://bugs.chromium.org/p/chromium/issues/detail?id=860344 which has identified the issue and made a number of fixes:

70.0.3499 - Fixed undocked devtools but broke other ones
70.0.3501 - All should be fixed, but is unreleased