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How do you adjust the space between the desktop notes - mine is now wider than version 8 and I like smaller spaces.
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Currently it is not possible adjust the space between the desktop notes when you are auto-arranging the notes.

But you can manually move the sticky notes closer to each other.

Further, you can disable the 'Snap to Grid' option from Preferences if you further want to move the desktop notes closer. To access  Notezilla 's Preferences, right click on  Notezilla  icon and choose Preferences from the menu.
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