As the title says there are some files with nested layers going so deep, the indent gets too wide:
Here an example from Microsoft’s Teams UI Kit:
While you can expand the width of the layers panel, in this example I have apparently reached the maximum width possible and some layers are still out of reach.
Preferrably Figma would scroll the layers panel automatically to always have layers in view that are cut off. When I deselect the layer in question, it would scroll back to the very left.