Hello,

To fix the spacing between the categories so that the categories did not displayed as overlapped. You can use the below CSS code in global custom CSS area under theme settings >> custom CSS:

.nav-shop .woodmart-product-categories li {
    position: relative;
    margin-left: 12px;
}

.nav-shop .category-nav-link .category-summary {
    width: 100px;
}

Result: https://jmp.sh/Tfk0Bsw

Best Regards.