diff --git a/.changeset/fix-badge-positioning.md b/.changeset/fix-badge-positioning.md
new file mode 100644
index 000000000..a6d3e50cd
--- /dev/null
+++ b/.changeset/fix-badge-positioning.md
@@ -0,0 +1,5 @@
+---
+'default': patch
+---
+
+Fix badge positioning and alignment across all sidebar components
diff --git a/.nvmrc b/.nvmrc
new file mode 100644
index 000000000..a4a7a41bc
--- /dev/null
+++ b/.nvmrc
@@ -0,0 +1 @@
+v24.14.0
diff --git a/src/app/components/message/layout/layout.css.ts b/src/app/components/message/layout/layout.css.ts
index 32dedb17d..76b7d1609 100644
--- a/src/app/components/message/layout/layout.css.ts
+++ b/src/app/components/message/layout/layout.css.ts
@@ -220,6 +220,7 @@ export const PronounPill = style({
 export const MessageTextBody = recipe({
   base: {
     wordBreak: 'break-word',
+    fontSize: '1rem !important', // Override folds Text component to enable page zoom scaling
   },
   variants: {
     preWrap: {
@@ -229,27 +230,27 @@ export const MessageTextBody = recipe({
     },
     jumboEmoji: {
       none: {
-        fontSize: '1em',
+        fontSize: '1rem !important',
         lineHeight: 'inherit',
       },
       extraSmall: {
-        fontSize: '1.25em',
+        fontSize: '1.25rem !important',
         lineHeight: '1.4em',
       },
       small: {
-        fontSize: '1.5em',
+        fontSize: '1.5rem !important',
         lineHeight: '1.5em',
       },
       normal: {
-        fontSize: '1.805em',
+        fontSize: '1.805rem !important',
         lineHeight: '1.625em',
       },
       large: {
-        fontSize: '2.1em',
+        fontSize: '2.1rem !important',
         lineHeight: '1.675em',
       },
       extraLarge: {
-        fontSize: '2.4em',
+        fontSize: '2.4rem !important',
         lineHeight: '1.7em',
       },
     },
diff --git a/src/app/components/sidebar/Sidebar.css.ts b/src/app/components/sidebar/Sidebar.css.ts
index 76337ed2d..b96307ae0 100644
--- a/src/app/components/sidebar/Sidebar.css.ts
+++ b/src/app/components/sidebar/Sidebar.css.ts
@@ -142,6 +142,39 @@ export const SidebarItemBadge = recipe({
   defaultVariants: {
     hasCount: false,
   },
+  // Adjust positioning when badge is on a folder (closed folder button)
+  compoundVariants: [
+    {
+      variants: {
+        hasCount: true,
+      },
+      style: {
+        selectors: {
+          // When the badge is within an item containing a closed folder, adjust position
+          // to align with the folder's square border
+          'div:has(> button[data-id])  &': {
+            top: toRem(0),
+            left: 'auto',
+            right: toRem(0),
+          },
+        },
+      },
+    },
+    {
+      variants: {
+        hasCount: false,
+      },
+      style: {
+        selectors: {
+          'div:has(> button[data-id]) &': {
+            top: toRem(2),
+            left: 'auto',
+            right: toRem(2),
+          },
+        },
+      },
+    },
+  ],
 });
 export type SidebarItemBadgeVariants = RecipeVariants<typeof SidebarItemBadge>;
 
diff --git a/src/app/pages/client/sidebar/AccountSwitcherTab.tsx b/src/app/pages/client/sidebar/AccountSwitcherTab.tsx
index 7d2a3ca11..1b722d244 100644
--- a/src/app/pages/client/sidebar/AccountSwitcherTab.tsx
+++ b/src/app/pages/client/sidebar/AccountSwitcherTab.tsx
@@ -276,7 +276,7 @@ export function AccountSwitcherTab() {
         )}
       </SidebarItemTooltip>
       {(totalBackgroundUnread > 0 || anyBackgroundHighlight) && (
-        <SidebarItemBadge hasCount>
+        <SidebarItemBadge hasCount style={{ left: toRem(-6), right: 'auto' }}>
           <UnreadBadge
             highlight={anyBackgroundHighlight}
             count={anyBackgroundHighlight ? totalBackgroundHighlight : totalBackgroundUnread}
diff --git a/src/app/pages/client/sidebar/DirectDMsList.tsx b/src/app/pages/client/sidebar/DirectDMsList.tsx
index 6d3974961..81d9f26d3 100644
--- a/src/app/pages/client/sidebar/DirectDMsList.tsx
+++ b/src/app/pages/client/sidebar/DirectDMsList.tsx
@@ -1,6 +1,6 @@
 import { useMemo, useState, useCallback } from 'react';
 import { useNavigate } from 'react-router-dom';
-import { Avatar, Text, Box } from 'folds';
+import { Avatar, Text, Box, toRem } from 'folds';
 import { useAtomValue } from 'jotai';
 import { Room, SyncState } from '$types/matrix-sdk';
 import { useDirects } from '$state/hooks/roomList';
@@ -56,62 +56,105 @@ function DMItem({ room, selected }: DMItemProps) {
   // Get unread info for badge
   const unread = roomToUnread.get(room.roomId);
 
-  return (
-    <SidebarItem active={selected}>
-      <SidebarItemTooltip tooltip={room.name}>
-        {(triggerRef) => (
-          <SidebarAvatar as="button" ref={triggerRef} outlined onClick={handleClick} size="400">
-            {isGroupDM ? (
-              <Box className={css.GroupAvatarContainer}>
-                <Box className={css.GroupAvatarRow}>
-                  {groupMembers.map((member) => {
-                    const avatarUrl = member.avatarUrl
-                      ? (mxcUrlToHttp(mx, member.avatarUrl, useAuthentication, 48, 48, 'crop') ??
-                        undefined)
-                      : undefined;
-
-                    return (
-                      <Avatar
-                        key={member.userId}
-                        size="200"
-                        radii="300"
-                        className={css.GroupAvatar}
-                      >
-                        <UserAvatar
-                          userId={member.userId}
-                          src={avatarUrl}
-                          alt={member.displayName || member.userId}
-                          renderFallback={() => (
-                            <Text as="span" size="T300">
-                              {nameInitials(member.displayName || member.userId)}
-                            </Text>
-                          )}
-                        />
-                      </Avatar>
-                    );
-                  })}
-                </Box>
-              </Box>
-            ) : (
-              <Avatar size="400" radii="400">
-                <RoomAvatar
-                  roomId={room.roomId}
-                  src={getDirectRoomAvatarUrl(mx, room, 96, useAuthentication)}
-                  alt={room.name}
+  // Determine avatar src for single group DM member to avoid nested ternary
+  const getSingleMemberAvatarSrc = () => {
+    if (groupMembers.length !== 1 || !groupMembers[0].avatarUrl) {
+      return undefined;
+    }
+    return (
+      mxcUrlToHttp(mx, groupMembers[0].avatarUrl, useAuthentication, 96, 96, 'crop') ?? undefined
+    );
+  };
+
+  // Render appropriate avatar based on DM type
+  const renderAvatar = () => {
+    if (!isGroupDM) {
+      // Regular DM
+      return (
+        <Avatar size="400" radii="400">
+          <RoomAvatar
+            roomId={room.roomId}
+            src={getDirectRoomAvatarUrl(mx, room, 96, useAuthentication)}
+            alt={room.name}
+            renderFallback={() => (
+              <Text as="span" size="H6">
+                {nameInitials(room.name)}
+              </Text>
+            )}
+          />
+        </Avatar>
+      );
+    }
+
+    if (groupMembers.length === 1) {
+      // Single member in group DM - fill the space like a normal DM
+      return (
+        <Avatar size="400" radii="400">
+          <UserAvatar
+            userId={groupMembers[0].userId}
+            src={getSingleMemberAvatarSrc()}
+            alt={groupMembers[0].displayName || groupMembers[0].userId}
+            renderFallback={() => (
+              <Text as="span" size="H6">
+                {nameInitials(groupMembers[0].displayName || groupMembers[0].userId)}
+              </Text>
+            )}
+          />
+        </Avatar>
+      );
+    }
+
+    // Multiple members in group DM - triangle layout
+    return (
+      <Box className={css.GroupAvatarContainer}>
+        <Box className={css.GroupAvatarRow}>
+          {groupMembers.map((member) => {
+            const avatarUrl = member.avatarUrl
+              ? (mxcUrlToHttp(mx, member.avatarUrl, useAuthentication, 48, 48, 'crop') ?? undefined)
+              : undefined;
+
+            return (
+              <Avatar key={member.userId} size="200" radii="300" className={css.GroupAvatar}>
+                <UserAvatar
+                  userId={member.userId}
+                  src={avatarUrl}
+                  alt={member.displayName || member.userId}
                   renderFallback={() => (
-                    <Text as="span" size="H6">
-                      {nameInitials(room.name)}
+                    <Text as="span" size="T300">
+                      {nameInitials(member.displayName || member.userId)}
                     </Text>
                   )}
                 />
               </Avatar>
-            )}
+            );
+          })}
+        </Box>
+      </Box>
+    );
+  };
+
+  return (
+    <SidebarItem active={selected}>
+      <SidebarItemTooltip tooltip={room.name}>
+        {(triggerRef) => (
+          <SidebarAvatar as="button" ref={triggerRef} outlined onClick={handleClick} size="400">
+            {renderAvatar()}
           </SidebarAvatar>
         )}
       </SidebarItemTooltip>
       {unread && (unread.total > 0 || unread.highlight > 0) && (
-        <SidebarItemBadge hasCount={unread.total > 0}>
-          <UnreadBadge highlight={unread.highlight > 0} count={unread.total} dm />
+        <SidebarItemBadge
+          hasCount={unread.total > 0}
+          style={{
+            left: unread.total > 0 ? toRem(-6) : toRem(-2),
+            right: 'auto',
+          }}
+        >
+          <UnreadBadge
+            highlight={unread.highlight > 0}
+            count={unread.highlight > 0 ? unread.highlight : unread.total}
+            dm
+          />
         </SidebarItemBadge>
       )}
     </SidebarItem>
diff --git a/src/app/pages/client/sidebar/DirectTab.tsx b/src/app/pages/client/sidebar/DirectTab.tsx
index b59f852c6..dd2a7d6e8 100644
--- a/src/app/pages/client/sidebar/DirectTab.tsx
+++ b/src/app/pages/client/sidebar/DirectTab.tsx
@@ -107,7 +107,13 @@ export function DirectTab() {
         )}
       </SidebarItemTooltip>
       {directUnread && (
-        <SidebarItemBadge hasCount={directUnread.total > 0}>
+        <SidebarItemBadge
+          hasCount={directUnread.total > 0}
+          style={{
+            left: directUnread.total > 0 ? toRem(-6) : toRem(-2),
+            right: 'auto',
+          }}
+        >
           <UnreadBadge
             highlight={directUnread.highlight > 0}
             count={directUnread.highlight > 0 ? directUnread.highlight : directUnread.total}
diff --git a/src/app/pages/client/sidebar/HomeTab.tsx b/src/app/pages/client/sidebar/HomeTab.tsx
index ba02326ee..611957f33 100644
--- a/src/app/pages/client/sidebar/HomeTab.tsx
+++ b/src/app/pages/client/sidebar/HomeTab.tsx
@@ -109,7 +109,13 @@ export function HomeTab() {
         )}
       </SidebarItemTooltip>
       {homeUnread && (
-        <SidebarItemBadge hasCount={homeUnread.total > 0}>
+        <SidebarItemBadge
+          hasCount={homeUnread.total > 0}
+          style={{
+            left: homeUnread.total > 0 ? toRem(-6) : toRem(-2),
+            right: 'auto',
+          }}
+        >
           <UnreadBadge
             highlight={homeUnread.highlight > 0}
             count={homeUnread.highlight > 0 ? homeUnread.highlight : homeUnread.total}
diff --git a/src/app/pages/client/sidebar/InboxTab.tsx b/src/app/pages/client/sidebar/InboxTab.tsx
index ec3bb21d1..9488d1029 100644
--- a/src/app/pages/client/sidebar/InboxTab.tsx
+++ b/src/app/pages/client/sidebar/InboxTab.tsx
@@ -1,5 +1,5 @@
 import { useNavigate } from 'react-router-dom';
-import { Icon, Icons } from 'folds';
+import { Icon, Icons, toRem } from 'folds';
 import { useAtomValue } from 'jotai';
 import {
   SidebarAvatar,
@@ -52,7 +52,7 @@ export function InboxTab() {
         )}
       </SidebarItemTooltip>
       {inviteCount > 0 && (
-        <SidebarItemBadge hasCount>
+        <SidebarItemBadge hasCount style={{ left: toRem(-6), right: 'auto' }}>
           <UnreadBadge highlight count={inviteCount} />
         </SidebarItemBadge>
       )}
diff --git a/src/app/pages/client/sidebar/SpaceTabs.tsx b/src/app/pages/client/sidebar/SpaceTabs.tsx
index 15ebd518d..a758cc1f8 100644
--- a/src/app/pages/client/sidebar/SpaceTabs.tsx
+++ b/src/app/pages/client/sidebar/SpaceTabs.tsx
@@ -465,7 +465,13 @@ function SpaceTab({
             )}
           </SidebarItemTooltip>
           {unread && (
-            <SidebarItemBadge hasCount={unread.total > 0}>
+            <SidebarItemBadge
+              hasCount={unread.total > 0}
+              style={{
+                left: unread.total > 0 ? toRem(-6) : toRem(-2),
+                right: 'auto',
+              }}
+            >
               <UnreadBadge
                 highlight={unread.highlight > 0}
                 count={unread.highlight > 0 ? unread.highlight : unread.total}
@@ -600,7 +606,13 @@ function ClosedSpaceFolder({
             )}
           </SidebarItemTooltip>
           {unread && (
-            <SidebarItemBadge hasCount={unread.total > 0}>
+            <SidebarItemBadge
+              hasCount={unread.total > 0}
+              style={{
+                left: unread.total > 0 ? toRem(-6) : toRem(-2),
+                right: 'auto',
+              }}
+            >
               <UnreadBadge
                 highlight={unread.highlight > 0}
                 count={unread.highlight > 0 ? unread.highlight : unread.total}
diff --git a/src/app/pages/client/sidebar/UnverifiedTab.tsx b/src/app/pages/client/sidebar/UnverifiedTab.tsx
index 3aca66551..a6c446b44 100644
--- a/src/app/pages/client/sidebar/UnverifiedTab.tsx
+++ b/src/app/pages/client/sidebar/UnverifiedTab.tsx
@@ -1,5 +1,5 @@
 import { useState } from 'react';
-import { Badge, color, Icon, Icons, Text } from 'folds';
+import { Badge, color, Icon, Icons, Text, toRem } from 'folds';
 import {
   SidebarAvatar,
   SidebarItem,
@@ -66,7 +66,7 @@ function UnverifiedIndicator() {
             )}
           </SidebarItemTooltip>
           {!unverified && unverifiedDeviceCount && unverifiedDeviceCount > 0 && (
-            <SidebarItemBadge hasCount>
+            <SidebarItemBadge hasCount style={{ left: toRem(-6), right: 'auto' }}>
               <Badge variant="Warning" size="400" fill="Solid" radii="Pill" outlined={false}>
                 <Text as="span" size="L400">
                   {unverifiedDeviceCount}