This reverts commit 571c7d4f66.
Manually tracking the hovered entities causes issues with hightlighting:
https://github.com/user-attachments/assets/932dc022-a0ad-485c-a9db-ef03d7b86032
cc @danilo-leal @nilskch
Release Notes:
- Fixed an issue where hovering over project panel would not update the
background correctly