We've tried to reproduce this strange behavior with no luck. If is possible to provide us the widget template with its CSS, so we can try to reproduce it in the same environment?
Also from the second screenshot it looks like that there isn't float property set on the category title - you can try this.
the Telerik team
Do you want to have your say in the Sitefinity development roadmap? Do you want to know when a feature you requested is added or when a bug fixed? Explore the Telerik Public Issue Tracking
system and vote to affect the priority of the items