diff --git a/src/vs/sessions/browser/parts/media/sessionsPart.css b/src/vs/sessions/browser/parts/media/sessionsPart.css
index f00e78c9b7dee..1f88b2bffa072 100644
--- a/src/vs/sessions/browser/parts/media/sessionsPart.css
+++ b/src/vs/sessions/browser/parts/media/sessionsPart.css
@@ -110,15 +110,21 @@
 	color: var(--vscode-agentsPanel-foreground) !important;
 }
 
-.monaco-workbench .part.sessionspart > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
-.monaco-workbench .part.sessionspart > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label {
+.monaco-workbench .part.sessionspart > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked,
+.monaco-workbench .part.sessionspart > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover {
 	outline: var(--vscode-contrastActiveBorder, unset) solid 1px !important;
 }
 
-.monaco-workbench .part.sessionspart > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover .action-label {
+.monaco-workbench .part.sessionspart > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover {
 	outline: var(--vscode-contrastActiveBorder, unset) dashed 1px !important;
 }
 
+/* Suppress nested outline on .action-label when .action-item already has the HC outline */
+.monaco-workbench .part.sessionspart > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
+.monaco-workbench .part.sessionspart > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label {
+	outline: none !important;
+}
+
 .monaco-workbench .sessionspart.part.pane-composite-part > .composite.title > .title-actions {
 	flex: inherit;
 }
diff --git a/src/vs/workbench/browser/parts/auxiliarybar/media/auxiliaryBarPart.css b/src/vs/workbench/browser/parts/auxiliarybar/media/auxiliaryBarPart.css
index c94d7e903ce63..c902724b44065 100644
--- a/src/vs/workbench/browser/parts/auxiliarybar/media/auxiliaryBarPart.css
+++ b/src/vs/workbench/browser/parts/auxiliarybar/media/auxiliaryBarPart.css
@@ -91,18 +91,26 @@
 	color: var(--vscode-activityBarTop-foreground) !important;
 }
 
-.monaco-workbench .part.auxiliarybar > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
-.monaco-workbench .part.auxiliarybar > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label,
-.monaco-workbench .part.auxiliarybar > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
-.monaco-workbench .part.auxiliarybar > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label {
+.monaco-workbench .part.auxiliarybar > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked,
+.monaco-workbench .part.auxiliarybar > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover,
+.monaco-workbench .part.auxiliarybar > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked,
+.monaco-workbench .part.auxiliarybar > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover {
 	outline: var(--vscode-contrastActiveBorder, unset) solid 1px !important;
 }
 
-.monaco-workbench .part.auxiliarybar > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover .action-label,
-.monaco-workbench .part.auxiliarybar > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover .action-label {
+.monaco-workbench .part.auxiliarybar > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover,
+.monaco-workbench .part.auxiliarybar > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover {
 	outline: var(--vscode-contrastActiveBorder, unset) dashed 1px !important;
 }
 
+/* Suppress nested outline on .action-label when .action-item already has the HC outline */
+.monaco-workbench .part.auxiliarybar > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
+.monaco-workbench .part.auxiliarybar > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label,
+.monaco-workbench .part.auxiliarybar > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
+.monaco-workbench .part.auxiliarybar > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label {
+	outline: none !important;
+}
+
 .monaco-workbench .auxiliarybar.part.pane-composite-part > .composite.title > .title-actions {
 	flex: 1;
 }
diff --git a/src/vs/workbench/browser/parts/media/paneCompositePart.css b/src/vs/workbench/browser/parts/media/paneCompositePart.css
index 42908982bb386..5f6790493146b 100644
--- a/src/vs/workbench/browser/parts/media/paneCompositePart.css
+++ b/src/vs/workbench/browser/parts/media/paneCompositePart.css
@@ -348,18 +348,26 @@
 	border-bottom-width: 2px;
 }
 
-.monaco-workbench .pane-composite-part > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
-.monaco-workbench .pane-composite-part > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label,
-.monaco-workbench .pane-composite-part > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
-.monaco-workbench .pane-composite-part > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label {
+.monaco-workbench .pane-composite-part > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked,
+.monaco-workbench .pane-composite-part > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover,
+.monaco-workbench .pane-composite-part > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked,
+.monaco-workbench .pane-composite-part > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover {
 	outline: var(--vscode-contrastActiveBorder, unset) solid 1px !important;
 }
 
-.monaco-workbench .pane-composite-part > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover .action-label,
-.monaco-workbench .pane-composite-part > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover .action-label {
+.monaco-workbench .pane-composite-part > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover,
+.monaco-workbench .pane-composite-part > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:not(.checked):hover {
 	outline: var(--vscode-contrastActiveBorder, unset) dashed 1px !important;
 }
 
+/* Suppress nested outline on .action-label when .action-item already has the HC outline */
+.monaco-workbench .pane-composite-part > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
+.monaco-workbench .pane-composite-part > .title > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label,
+.monaco-workbench .pane-composite-part > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item.checked .action-label,
+.monaco-workbench .pane-composite-part > .header-or-footer > .composite-bar-container > .composite-bar > .monaco-action-bar .action-item:hover .action-label {
+	outline: none !important;
+}
+
 /** Empty Pane Message **/
 
 .monaco-workbench .pane-composite-part .empty-pane-message-area {