No, it doesn't change the problem.
I then closed the designer, edited the guistate57.xml file.
I changed the width in all the <DialogSize DialogType="13" Width="800" Height="526" />
to 800 from 6xx, different dialog types have different numbers.
saved and reopened. No joy, still same problem (I'm not sure the dialogs used that width though).
I then manually resized the dialog, made it wider, the issue goes away. Then made it narrower, the issue stayed away.
Closed dialog and reopened, issue back.
The other dialog I've noticed it on is the one on opening designer for opening a project. There though I don't seem to be able to do the resize trick. So I can't open an existing project from there.