Submitting this in idea exchange since when I sent this to support in the past they claimed this wasn't a bug and was functioning as expected.
Since this being the expected behavior is absolute crazy town, I'm submitting it here for an update.
Embedded app studio apps have a shift in navigation where the logo would be no matter what the configuration of the app is.
This is vertical navigation with "Show App Title" and "Show Logo" disabled in the appstudio configuration. You can see the navigation load in, then shift up. If you enable "Show Logo", the behavior is the same except it loads a placeholder image, then the nav shifts up and then back down when the logo loads in:
Here's a horizontal navigation which also has the same loading shift but this one has "Show Logo" enabled. You'll notice a placeholder image load in first, then the app logo later as the navigation shifts again. I've attempted compressing the logo to extremely small but this is the behavior every time. It looks very unfinished:
Here's a still of that placeholder logo:
Just needs some cleaning up and feels very "buggy" in it's current state even though I've been assured this is functioning as designed.