diff --git a/php-transformer/composer.json b/php-transformer/composer.json
index f8427df2a..d322639a6 100644
--- a/php-transformer/composer.json
+++ b/php-transformer/composer.json
@@ -351,6 +351,7 @@
       "php tests/unit/navigation-resolved-projection-spacing.php",
       "php tests/unit/source-target-projection-state.php",
       "php tests/unit/navigation-layout-default.php",
+      "php tests/unit/navigation-stacked-block-list-layout.php",
       "php tests/unit/navigation-vertical-orientation.php",
       "php tests/unit/navigation-source-provenance.php",
       "php tests/unit/navigation-dropped-anchors.php",
diff --git a/php-transformer/src/HtmlToBlocks/Patterns/NavigationPattern.php b/php-transformer/src/HtmlToBlocks/Patterns/NavigationPattern.php
index 096331484..581eb18be 100644
--- a/php-transformer/src/HtmlToBlocks/Patterns/NavigationPattern.php
+++ b/php-transformer/src/HtmlToBlocks/Patterns/NavigationPattern.php
@@ -252,6 +252,9 @@ public function recognize(DOMElement $element, PatternContext $context): ?Patter
             $navigationAttrs['layout'] = array( 'type' => 'flex', 'orientation' => 'vertical' );
         }
         $navigationAttrs['overlayMenu'] = $this->overlayMenu($element, $navigationContext);
+        if ( 'never' === $navigationAttrs['overlayMenu'] && ! $label instanceof DOMElement ) {
+            $navigationAttrs = $this->withStackedBlockListLayout($navigationAttrs, $navigationSource, $listSource, $navigationContext);
+        }
         if ( 'mobile' === $navigationAttrs['overlayMenu'] ) {
             $navigationAttrs = $this->withClassName($navigationAttrs, 'blocks-engine-native-responsive-navigation');
             $navigationAttrs = $this->withResponsiveToggleMarker($navigationAttrs, $element, $navigationContext);
@@ -1203,6 +1206,49 @@ private function withResolvedNonFlexNavigationLayout(array $attrs, DOMElement $e
         return $attrs;
     }
 
+    /**
+     * Carry a source list that stacks block items onto core's flow layout.
+     *
+     * An in-flow list navigation renders its generated list as
+     * `display:contents`, so the items lay out in the navigation host. With no
+     * layout the host is core's flex row, and items the source stacked full
+     * width shrink to their min-width instead. When neither the host nor its
+     * list declares a display, the source list is a block box; the items prove
+     * the stack only when every one declares a block-level display. Floated
+     * block items still need flow: a flex row ignores the float that the
+     * projected item rule carries. Without item evidence core's default stays.
+     *
+     * @param array<string, mixed> $attrs
+     * @return array<string, mixed>
+     */
+    private function withStackedBlockListLayout(array $attrs, DOMElement $host, ?DOMElement $list, ?NavigationPatternContext $navigationContext): array
+    {
+        if ( null === $navigationContext || ! $list instanceof DOMElement || is_array($attrs['layout'] ?? null)
+            || '' !== trim($navigationContext->resolvedDisplay($host))
+            || '' !== trim($navigationContext->resolvedDisplay($list))
+        ) {
+            return $attrs;
+        }
+
+        $items = 0;
+        foreach ( $list->childNodes as $child ) {
+            if ( ! $child instanceof DOMElement || 'li' !== strtolower($child->tagName) ) {
+                continue;
+            }
+            $display = strtolower(trim($navigationContext->resolvedDisplay($child)));
+            if ( ! in_array($display, array( 'block', 'list-item', 'flow-root' ), true) ) {
+                return $attrs;
+            }
+            ++$items;
+        }
+
+        if ( 0 < $items ) {
+            $attrs['layout'] = array( 'type' => 'default' );
+        }
+
+        return $attrs;
+    }
+
     /**
      * Carry a source menu whose cascade stacks its items in a column onto
      * core/navigation's vertical orientation.
diff --git a/php-transformer/tests/fixtures/capture-evidence-equivalence/expected.json b/php-transformer/tests/fixtures/capture-evidence-equivalence/expected.json
index c4da97187..6a7934339 100644
--- a/php-transformer/tests/fixtures/capture-evidence-equivalence/expected.json
+++ b/php-transformer/tests/fixtures/capture-evidence-equivalence/expected.json
@@ -275,7 +275,7 @@
         {
             "id": "2448c3c2ebf7c03839a1ad542beec24efd2a805c",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "241e746902379c4decbeb3b64549c6310791c6d6535c51b83b01b83059f98224",
+            "expected_sha256": "71634f402ac1c35b2b58aa7a84368a05df1eefae88fd57710e8613f985781b01",
             "outcome": "output"
         },
         {
@@ -323,7 +323,7 @@
         {
             "id": "2890e8f1ed5ae188e261c80d3c9a1ad1e1928cd2",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "eb37f1652823bd47a70755937fe0632ca5d1464660cad51b999e4dabc1419163",
+            "expected_sha256": "3eebcdcab44579a25d3086471a45fc14df01fdbbc47b55f8143a61575e554259",
             "outcome": "output"
         },
         {
@@ -539,7 +539,7 @@
         {
             "id": "448ead36f649a72e98e642cebc29f9f71af779f5",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "631b17e61a09b144cf92acf35c1388d3cbf1542fc15e5aeb858a0dfacac142b7",
+            "expected_sha256": "788553d7c9d9def419dcde4bcceb82aa342e2738cf5ddc4337578d1e77aab4a9",
             "outcome": "output"
         },
         {
@@ -569,7 +569,7 @@
         {
             "id": "46f79246a3c128cd0672e296d1164e4d6882750a",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "7bd66a28531c17d5e2b7c45a491a8ab8c1acaa98f59adc4b748fbfe65afcf2b4",
+            "expected_sha256": "f26a1bc83d32db0bf72caffb515b27c3c8ca10e6806b70220ce8572cb31da295",
             "outcome": "output"
         },
         {
@@ -1349,7 +1349,7 @@
         {
             "id": "a5a08a8615d2682ce0d38a5053bcec23199be36f",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "7fb14b9b715633998d19b1f060d54e71396285c5e63c30103dfe33760db2c034",
+            "expected_sha256": "e5b0e2aff14da96082ecfcee6553949478c0a26b6591bd00f94151319390938a",
             "outcome": "output"
         },
         {
@@ -1439,7 +1439,7 @@
         {
             "id": "b550beb0271acdd852382b101d2fc6653b1cb107",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "03c14aaf5f28dc4d2bc8846e033f7b7a8d4e3e4e92b081af72582825de6f956c",
+            "expected_sha256": "20727b3683cd0dec389f6ddb8b48258c920462384880aaa2771bdb7c29b37f4d",
             "outcome": "output"
         },
         {
@@ -1607,7 +1607,7 @@
         {
             "id": "c7fff215fed715e93aa155c4e0e5e31d7db084b1",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "617d6414e9b6c7ea4b1449c99e3032204fadbed75f2928c5fdaaa926d54dba4a",
+            "expected_sha256": "106e074f127f6f0447ad54bdae1ace6d467caf6cbe642625c1fb6ed05e4d9064",
             "outcome": "output"
         },
         {
@@ -1817,7 +1817,7 @@
         {
             "id": "e2e35d0c5c02ff06b23bc87fb59bc585201bc46f",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "21ac153f4c03dc58a8aa26d880caed406d3a1c5eff6b433998c6a6be5356f24a",
+            "expected_sha256": "ae10e2c73a21de5017246eb1b17695f380c99f9a151fc48d7d31dec731980f95",
             "outcome": "output"
         },
         {
@@ -1937,7 +1937,7 @@
         {
             "id": "f025cf281f15d03cf61d0c76c1f4bd7adc3b257e",
             "entry": "HtmlTransformer::transform",
-            "expected_sha256": "d593dbb9d4e959252de18457290377da1fb9ccd0b8a840a2cd747d9349c0916d",
+            "expected_sha256": "fd454ce10af80c82684627e69547bdb36f3fcb030dfcc3e5a2eac6e3c160fd94",
             "outcome": "output"
         },
         {
diff --git a/php-transformer/tests/unit/navigation-stacked-block-list-layout.php b/php-transformer/tests/unit/navigation-stacked-block-list-layout.php
new file mode 100644
index 000000000..cc0aecc61
--- /dev/null
+++ b/php-transformer/tests/unit/navigation-stacked-block-list-layout.php
@@ -0,0 +1,82 @@
+<?php
+declare(strict_types=1);
+
+/**
+ * A list navigation whose items the source stacks as blocks keeps that flow.
+ *
+ * An in-flow list navigation renders its generated list as
+ * `display:contents`, so the items lay out in core/navigation itself. With no
+ * layout that is core's flex row: a Wix phone menu (`.menu>ul li{display:block}`
+ * with no display on the nav or the list) came out as flex items sized by their
+ * `min-width`, and the longer labels were cut off. Only item evidence switches
+ * the default: an unstyled menu, inline items, and a flex list keep
+ * core's row.
+ */
+
+require dirname(__DIR__, 2) . '/vendor/autoload.php';
+
+use Automattic\BlocksEngine\PhpTransformer\HtmlToBlocks\HtmlTransformer;
+
+$failures = 0;
+$passes = 0;
+$assert = static function (bool $ok, string $message, string $detail = '') use (&$failures, &$passes): void {
+    if ( $ok ) {
+        ++$passes;
+        return;
+    }
+    ++$failures;
+    fwrite(STDERR, 'FAIL: ' . $message . ( '' !== $detail ? ' - ' . $detail : '' ) . PHP_EOL);
+};
+
+$items = '';
+foreach ( array( 'Contact Us' => '/contact', 'Annual Meetings' => '/meetings', 'News &amp; Events' => '/events' ) as $label => $href ) {
+    $items .= '<li class="item"><div class="box"><span class="wrap"><a class="link" href="' . $href . '">' . $label . '</a></span></div></li>';
+}
+$layout = static function (string $css, string $scope = '') use ($items): ?array {
+    $body = '<nav class="menu"><ul class="list">' . $items . '</ul></nav>';
+    if ( '' !== $scope ) {
+        $body = '<div class="data-liberation-mobile-document" data-dla-device-document="mobile" data-dla-document-scope="">'
+            . '<header>' . $body . '</header><main><p>Body</p></main></div>';
+    }
+    $serialized = (string) (( new HtmlTransformer() )->transform('<style>' . $css . '</style>' . $body, array())->toArray()['serialized_blocks'] ?? '');
+    if ( 1 !== preg_match('/<!-- wp:navigation (\{.*?\}) (?:\/)?-->/', $serialized, $match) ) {
+        return array( 'missing' => true );
+    }
+    $attrs = json_decode($match[1], true);
+
+    return is_array($attrs) && is_array($attrs['layout'] ?? null) ? $attrs['layout'] : null;
+};
+$menu = static fn (string $scope, string $itemRule): string => $scope . '.menu{direction:ltr}'
+    . $scope . '.menu>ul{box-sizing:border-box;width:100%}'
+    . $scope . '.menu>ul li{' . $itemRule . '}'
+    . $scope . '.item{min-width:100px}'
+    . $scope . '.item .box{display:grid;height:45px}';
+
+$scope = ':where([data-dla-device-document="mobile"]) ';
+$assert(
+    array( 'type' => 'default' ) === $layout($menu($scope, 'display:block'), $scope),
+    'a device-scoped menu whose items are declared block stacks in core flow',
+    json_encode($layout($menu($scope, 'display:block'), $scope))
+);
+$assert(
+    array( 'type' => 'default' ) === $layout($menu('', 'display:block')),
+    'the same menu without a device scope stacks in core flow'
+);
+$assert(
+    array( 'type' => 'default' ) === $layout($menu('', 'display:list-item')),
+    'list-item items are block-level too'
+);
+$assert(null === $layout($menu('', 'display:inline-block')), 'inline-block items keep core\'s row');
+$assert(
+    array( 'type' => 'default' ) === $layout($menu('', 'display:block;float:left')),
+    'floated block items take flow, where their projected float still applies'
+);
+$assert(null === $layout($menu('', 'display:block') . '.menu>ul{display:flex}'), 'a flex list keeps core\'s row');
+$assert(null === $layout('.menu{direction:ltr}'), 'a menu without item display evidence keeps core\'s default');
+
+if ( 0 < $failures ) {
+    fwrite(STDERR, "Navigation stacked block list layout: {$failures} failed, {$passes} passed\n");
+    exit(1);
+}
+
+echo "Navigation stacked block list layout passed: {$passes} assertions\n";
diff --git a/php-transformer/tools/capture-evidence-equivalence/README.md b/php-transformer/tools/capture-evidence-equivalence/README.md
index ec2ea0e3e..f530dd381 100644
--- a/php-transformer/tools/capture-evidence-equivalence/README.md
+++ b/php-transformer/tools/capture-evidence-equivalence/README.md
@@ -66,6 +66,12 @@ replay by case:
   source trigger buttons with `data-blocks-engine-tab-trigger`, so their box
   styling carries onto native tab buttons. The projected HTML gains the marker
   and the tab-list carrier class hash changes in `173a88a2`, `56cfc02b`, `5ad295f6`, `5af9c0c1`, `6657cdac`, `6a79dc90`, `88ac82df`, `8a631c3c`, `8c22a321`, `983aa909`, `9885239b`, `ca0b670d`, `d28fa845`, `d76cc245`, `e970e58c`, `f159a7b6`.
+- **Declared block menu items stack in core flow** (#2726). A list
+  navigation whose items all declare a block-level display, with no display
+  on the nav or its list, records `"layout":{"type":"default"}`. That adds
+  the attribute in `46f79246` and `e2e35d0c`. The extra display lookups only
+  move the style-rule candidate cache counters in `2448c3c2`, `2890e8f1`,
+  `448ead36`, `a5a08a86`, `b550beb0`, `c7fff215` and `f025cf28`.
 
 When regenerating from the pre-move commit, re-record these cases from the
 checkout that introduced them, and only after checking the difference again.