What problem does this address?

In the site editor we can open the Navigation Panel through the template dropdown button:

From here, it is unclear how to then close this sidebar:

If a new user has first opened this panel by the template dropdown, the interaction with the "W" icon as a toggle for it is genuinely unclear. This results in frustration as the user is unable to close the panel.

This confusion and feeling of being 'trapped' with the panel open is further exacerbated by two other behaviors:

• The panel does not close when an item is selected (changing this being tried here -Site Editor: Always use full screen mode #29489 )
• There is no 'esc' shortcut to close the panel while focused. (opened separate issue Site Editor Navigation Panel - Allow 'esc' to close the panel. #29530 )

What is your proposed solution?

Update the "W" icon to animate to an "X" or other close icon when the panel is open.