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I do not understand why we cannot place widgets out to the edges of the screen. Folders can be placed there but widgets get relocated away from the edge. Just curious.

Most likely this is to prevent problems when resizing the screen (for example when attaching another monitor or using your kde settings on another system. In that case all widgets, plasmoids, whever gets relocated to fit inside the visible area. That does make sense because they would not be accessible otherwise.

Two annoying issues in this:
1. your setup is totally scambled afterwards, since the previous locations are lost
2. it is indeed annoying that you cannot place a plasmoid at the edge or even over the edge when you want to (it is my system, isn't it? So why don't you let me do that? )

would you say it is this bug https://bugs.kde.org/show_bug.cgi?id=301225