Maybe this is something to do with the Fences label font size I am using - 9pt Segoe UI italic. If I increase the size to 14pt the folder icon is better placed in relation to the fence label text, but this displacement didn't affect Fences version 2.0.
I have reproduced this by changing the font size.
I will alert the devs and see what we can do.
Thanks so much for the feedback!