In the attached example, I seem to have padding around the nested menu when it opens up to the larger screen, but can not seem to remove it. I have spent lots of time going through the settings with no luck. I did change the body color to contrast with the containers. Any ideas?

(Having trouble attaching file...)

I am unable to post a .zip or .rsd file. Here are a few screen shots

Here is the other screen shot.

Here is the .zip file

Marc, it seems that the zip file is faulty. Is the project file the same as you have posted before? If so, I still have it.

Sorry to butt in
and sorry if I am stating something you already know

It is easy to see which element has any padding, by going to the "Elements" panel and moving your mouse down over each element one at a timeat a time, when you are over an element, in the canvas view the element gets highlighted in blue, with a green border around it which shows that the element has some padding, an orange border around it which shows that it has margins. or both if it has margins & padding.
I am mentioning it because if there appears to be padding which you can't find, then maybe it is on something else that is , causing you the issue, or maybe it's not padding/margins at all.

No need to be sorry!
Judging from what I could see in the version I have, the one I made the blue container go below the logo for you, the only element with some padding seems to be that logo - in wide view. If I remove the top and bottom padding, there is no difference, and my guess is, that this must have something to do with the grid setup that Phil used for this navigation. I'm not familiar with the ins and outs of the Grid system, so in this case I won't be able to help.

I have not been able to attach a .RSD file or a ZIP file. So, here is another stab at an older winzip version.

Wayan, I have tried that and do not see any. Once you open the ZIP file and preview it in the browser you will see what I am talking about. I looks like padding appears at the largest break point only around the top container. I went as far a printing out the code for the med and large breakpoint and analyzing it on paper to see, but was note able to find anything in any container or logo.

Here is a CSS code for my 'ul.list-container.large-horizontal.list-container-menu.menu.vertical' :
background-origin: padding-box; Could this be it? If so, where do I go to remove it?