diff --git a/lerna.json b/lerna.json
index fdc8a233a80618..87025e6fc01516 100644
--- a/lerna.json
+++ b/lerna.json
@@ -15,5 +15,5 @@
       "registry": "https://registry.npmjs.org/"
     }
   },
-  "version": "16.2.1-canary.7"
+  "version": "16.2.1-canary.8"
 }
\ No newline at end of file
diff --git a/packages/create-next-app/package.json b/packages/create-next-app/package.json
index 5b836f16f86d65..dbb0b78c45b6fc 100644
--- a/packages/create-next-app/package.json
+++ b/packages/create-next-app/package.json
@@ -1,6 +1,6 @@
 {
   "name": "create-next-app",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "keywords": [
     "react",
     "next",
diff --git a/packages/eslint-config-next/package.json b/packages/eslint-config-next/package.json
index 02793c00e718b3..3df8ded0385566 100644
--- a/packages/eslint-config-next/package.json
+++ b/packages/eslint-config-next/package.json
@@ -1,6 +1,6 @@
 {
   "name": "eslint-config-next",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "description": "ESLint configuration used by Next.js.",
   "license": "MIT",
   "repository": {
@@ -12,7 +12,7 @@
     "dist"
   ],
   "dependencies": {
-    "@next/eslint-plugin-next": "16.2.1-canary.7",
+    "@next/eslint-plugin-next": "16.2.1-canary.8",
     "eslint-import-resolver-node": "^0.3.6",
     "eslint-import-resolver-typescript": "^3.5.2",
     "eslint-plugin-import": "^2.32.0",
diff --git a/packages/eslint-plugin-internal/package.json b/packages/eslint-plugin-internal/package.json
index 14e9ab78833b65..862e57e368a04c 100644
--- a/packages/eslint-plugin-internal/package.json
+++ b/packages/eslint-plugin-internal/package.json
@@ -1,7 +1,7 @@
 {
   "name": "@next/eslint-plugin-internal",
   "private": true,
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "description": "ESLint plugin for working on Next.js.",
   "exports": {
     ".": "./src/eslint-plugin-internal.js"
diff --git a/packages/eslint-plugin-next/package.json b/packages/eslint-plugin-next/package.json
index 743cd6afc4a587..46a7a550fc1ee0 100644
--- a/packages/eslint-plugin-next/package.json
+++ b/packages/eslint-plugin-next/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/eslint-plugin-next",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "description": "ESLint plugin for Next.js.",
   "main": "dist/index.js",
   "types": "dist/index.d.ts",
diff --git a/packages/font/package.json b/packages/font/package.json
index 42514fe56915f9..14fb8f0502a113 100644
--- a/packages/font/package.json
+++ b/packages/font/package.json
@@ -1,7 +1,7 @@
 {
   "name": "@next/font",
   "private": true,
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "repository": {
     "url": "vercel/next.js",
     "directory": "packages/font"
diff --git a/packages/next-bundle-analyzer/package.json b/packages/next-bundle-analyzer/package.json
index dc1b016fc8e715..66f2a566d48adb 100644
--- a/packages/next-bundle-analyzer/package.json
+++ b/packages/next-bundle-analyzer/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/bundle-analyzer",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "main": "index.js",
   "types": "index.d.ts",
   "license": "MIT",
diff --git a/packages/next-codemod/package.json b/packages/next-codemod/package.json
index 7a97fa47841a91..b3cd0958704d24 100644
--- a/packages/next-codemod/package.json
+++ b/packages/next-codemod/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/codemod",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "license": "MIT",
   "repository": {
     "type": "git",
diff --git a/packages/next-env/package.json b/packages/next-env/package.json
index de525a6bfeffd3..349f5aa54d2705 100644
--- a/packages/next-env/package.json
+++ b/packages/next-env/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/env",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "keywords": [
     "react",
     "next",
diff --git a/packages/next-mdx/package.json b/packages/next-mdx/package.json
index 66933cb7e2a1f7..670c3ab4176776 100644
--- a/packages/next-mdx/package.json
+++ b/packages/next-mdx/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/mdx",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "main": "index.js",
   "license": "MIT",
   "repository": {
diff --git a/packages/next-playwright/package.json b/packages/next-playwright/package.json
index e62abb3daa8d3e..1649a0d48cacdc 100644
--- a/packages/next-playwright/package.json
+++ b/packages/next-playwright/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/playwright",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "repository": {
     "url": "vercel/next.js",
     "directory": "packages/next-playwright"
diff --git a/packages/next-plugin-storybook/package.json b/packages/next-plugin-storybook/package.json
index 19f85609894dcf..c7dc7ce581c161 100644
--- a/packages/next-plugin-storybook/package.json
+++ b/packages/next-plugin-storybook/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/plugin-storybook",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "repository": {
     "url": "vercel/next.js",
     "directory": "packages/next-plugin-storybook"
diff --git a/packages/next-polyfill-module/package.json b/packages/next-polyfill-module/package.json
index ea391abe71a93a..c28cd98b4c66d9 100644
--- a/packages/next-polyfill-module/package.json
+++ b/packages/next-polyfill-module/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/polyfill-module",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "description": "A standard library polyfill for ES Modules supporting browsers (Edge 16+, Firefox 60+, Chrome 61+, Safari 10.1+)",
   "main": "dist/polyfill-module.js",
   "license": "MIT",
diff --git a/packages/next-polyfill-nomodule/package.json b/packages/next-polyfill-nomodule/package.json
index dca7a5b104a383..834b7df2582cdf 100644
--- a/packages/next-polyfill-nomodule/package.json
+++ b/packages/next-polyfill-nomodule/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/polyfill-nomodule",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "description": "A polyfill for non-dead, nomodule browsers.",
   "main": "dist/polyfill-nomodule.js",
   "license": "MIT",
diff --git a/packages/next-routing/package.json b/packages/next-routing/package.json
index 29c3176770c000..73e3baaa109fdb 100644
--- a/packages/next-routing/package.json
+++ b/packages/next-routing/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/routing",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "keywords": [
     "react",
     "next",
diff --git a/packages/next-rspack/package.json b/packages/next-rspack/package.json
index 1e0ece8ca2d545..01fd2c8dbef3f2 100644
--- a/packages/next-rspack/package.json
+++ b/packages/next-rspack/package.json
@@ -1,6 +1,6 @@
 {
   "name": "next-rspack",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "repository": {
     "url": "vercel/next.js",
     "directory": "packages/next-rspack"
diff --git a/packages/next-swc/package.json b/packages/next-swc/package.json
index 613c98eb88c17b..eaca04f36b7201 100644
--- a/packages/next-swc/package.json
+++ b/packages/next-swc/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/swc",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "private": true,
   "files": [
     "native/"
diff --git a/packages/next/package.json b/packages/next/package.json
index 4ffb55166fdf54..d89c6890c64747 100644
--- a/packages/next/package.json
+++ b/packages/next/package.json
@@ -1,6 +1,6 @@
 {
   "name": "next",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "description": "The React Framework",
   "main": "./dist/server/next.js",
   "license": "MIT",
@@ -97,7 +97,7 @@
     ]
   },
   "dependencies": {
-    "@next/env": "16.2.1-canary.7",
+    "@next/env": "16.2.1-canary.8",
     "@swc/helpers": "0.5.15",
     "baseline-browser-mapping": "^2.9.19",
     "caniuse-lite": "^1.0.30001579",
@@ -161,11 +161,11 @@
     "@modelcontextprotocol/sdk": "1.18.1",
     "@mswjs/interceptors": "0.23.0",
     "@napi-rs/triples": "1.2.0",
-    "@next/font": "16.2.1-canary.7",
-    "@next/polyfill-module": "16.2.1-canary.7",
-    "@next/polyfill-nomodule": "16.2.1-canary.7",
-    "@next/react-refresh-utils": "16.2.1-canary.7",
-    "@next/swc": "16.2.1-canary.7",
+    "@next/font": "16.2.1-canary.8",
+    "@next/polyfill-module": "16.2.1-canary.8",
+    "@next/polyfill-nomodule": "16.2.1-canary.8",
+    "@next/react-refresh-utils": "16.2.1-canary.8",
+    "@next/swc": "16.2.1-canary.8",
     "@opentelemetry/api": "1.6.0",
     "@playwright/test": "1.58.2",
     "@rspack/core": "1.6.7",
diff --git a/packages/next/src/next-devtools/dev-overlay/menu/panel-router.tsx b/packages/next/src/next-devtools/dev-overlay/menu/panel-router.tsx
index 7aba82fb6ff18c..dd06ec1803e42d 100644
--- a/packages/next/src/next-devtools/dev-overlay/menu/panel-router.tsx
+++ b/packages/next/src/next-devtools/dev-overlay/menu/panel-router.tsx
@@ -261,6 +261,8 @@ export const PanelRouter = () => {
         <PanelRoute name="instant-navs">
           <DynamicPanel
             sharePanelSizeGlobally={false}
+            sharePanelPositionGlobally={false}
+            draggable
             sizeConfig={{
               kind: 'fixed',
               height: 300 / state.scale,
diff --git a/packages/react-refresh-utils/package.json b/packages/react-refresh-utils/package.json
index 81961b333d23ca..011153016d5b17 100644
--- a/packages/react-refresh-utils/package.json
+++ b/packages/react-refresh-utils/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/react-refresh-utils",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "description": "An experimental package providing utilities for React Refresh.",
   "repository": {
     "url": "vercel/next.js",
diff --git a/packages/third-parties/package.json b/packages/third-parties/package.json
index 34f347c6ef0389..ae243f2e6ca5f2 100644
--- a/packages/third-parties/package.json
+++ b/packages/third-parties/package.json
@@ -1,6 +1,6 @@
 {
   "name": "@next/third-parties",
-  "version": "16.2.1-canary.7",
+  "version": "16.2.1-canary.8",
   "repository": {
     "url": "vercel/next.js",
     "directory": "packages/third-parties"
@@ -26,7 +26,7 @@
     "third-party-capital": "1.0.20"
   },
   "devDependencies": {
-    "next": "16.2.1-canary.7",
+    "next": "16.2.1-canary.8",
     "outdent": "0.8.0",
     "prettier": "2.5.1",
     "typescript": "5.9.2"
diff --git a/pnpm-lock.yaml b/pnpm-lock.yaml
index f92359ff8b2a32..8489b997182542 100644
--- a/pnpm-lock.yaml
+++ b/pnpm-lock.yaml
@@ -1017,7 +1017,7 @@ importers:
   packages/eslint-config-next:
     dependencies:
       '@next/eslint-plugin-next':
-        specifier: 16.2.1-canary.7
+        specifier: 16.2.1-canary.8
         version: link:../eslint-plugin-next
       eslint:
         specifier: '>=9.0.0'
@@ -1094,7 +1094,7 @@ importers:
   packages/next:
     dependencies:
       '@next/env':
-        specifier: 16.2.1-canary.7
+        specifier: 16.2.1-canary.8
         version: link:../next-env
       '@swc/helpers':
         specifier: 0.5.15
@@ -1219,19 +1219,19 @@ importers:
         specifier: 1.2.0
         version: 1.2.0
       '@next/font':
-        specifier: 16.2.1-canary.7
+        specifier: 16.2.1-canary.8
         version: link:../font
       '@next/polyfill-module':
-        specifier: 16.2.1-canary.7
+        specifier: 16.2.1-canary.8
         version: link:../next-polyfill-module
       '@next/polyfill-nomodule':
-        specifier: 16.2.1-canary.7
+        specifier: 16.2.1-canary.8
         version: link:../next-polyfill-nomodule
       '@next/react-refresh-utils':
-        specifier: 16.2.1-canary.7
+        specifier: 16.2.1-canary.8
         version: link:../react-refresh-utils
       '@next/swc':
-        specifier: 16.2.1-canary.7
+        specifier: 16.2.1-canary.8
         version: link:../next-swc
       '@opentelemetry/api':
         specifier: 1.6.0
@@ -1955,7 +1955,7 @@ importers:
         version: 1.0.20
     devDependencies:
       next:
-        specifier: 16.2.1-canary.7
+        specifier: 16.2.1-canary.8
         version: link:../next
       outdent:
         specifier: 0.8.0
diff --git a/test/development/app-dir/instant-navs-devtools/instant-navs-devtools.test.ts b/test/development/app-dir/instant-navs-devtools/instant-navs-devtools.test.ts
index 5792beccc3be5c..a1cd26e5bb7a4f 100644
--- a/test/development/app-dir/instant-navs-devtools/instant-navs-devtools.test.ts
+++ b/test/development/app-dir/instant-navs-devtools/instant-navs-devtools.test.ts
@@ -38,7 +38,10 @@ describe('instant-nav-panel', () => {
   }
 
   async function clickStartClientNav(browser: Playwright) {
-    await browser.elementByCssInstant('[data-instant-nav-client]').click()
+    await browser
+      // TODO: Monitor if we need to increase timeouts for all *instant calls
+      .elementByCss('[data-instant-nav-client]', { timeout: 50 })
+      .click()
     await waitForInstantModeCookie(browser)
   }