diff --git a/packages/base-styles/_z-index.scss b/packages/base-styles/_z-index.scss
index af679edb910642..6f7e3f2f13c309 100644
--- a/packages/base-styles/_z-index.scss
+++ b/packages/base-styles/_z-index.scss
@@ -25,7 +25,6 @@ $z-layers: (
 	".components-popover__close": 5,
 	".block-editor-block-list__insertion-point": 6,
 	".block-editor-warning": 5,
-	".block-library-gallery-item__inline-menu": 20,
 	".block-editor-url-input__suggestions": 30,
 	".edit-post-layout__footer": 30,
 	".interface-interface-skeleton__header": 30,
diff --git a/packages/block-editor/src/components/inspector-controls-tabs/position-controls-panel.js b/packages/block-editor/src/components/inspector-controls-tabs/position-controls-panel.js
index 42a8597227dee9..17f65d58b8f74b 100644
--- a/packages/block-editor/src/components/inspector-controls-tabs/position-controls-panel.js
+++ b/packages/block-editor/src/components/inspector-controls-tabs/position-controls-panel.js
@@ -2,11 +2,11 @@
  * WordPress dependencies
  */
 import {
-	PanelBody,
 	__experimentalUseSlotFills as useSlotFills,
+	__experimentalToolsPanel as ToolsPanel,
+	__experimentalToolsPanelItem as ToolsPanelItem,
 } from '@wordpress/components';
-import { useSelect } from '@wordpress/data';
-import { useLayoutEffect, useState } from '@wordpress/element';
+import { useDispatch, useSelect } from '@wordpress/data';
 import { __ } from '@wordpress/i18n';
 
 /**
@@ -15,40 +15,75 @@ import { __ } from '@wordpress/i18n';
 import InspectorControlsGroups from '../inspector-controls/groups';
 import { default as InspectorControls } from '../inspector-controls';
 import { store as blockEditorStore } from '../../store';
+import { useToolsPanelDropdownMenuProps } from '../global-styles/utils';
+import { cleanEmptyObject } from '../../hooks/utils';
 
 const PositionControlsPanel = () => {
-	const [ initialOpen, setInitialOpen ] = useState();
+	const { selectedClientIds, selectedBlocks, hasPositionAttribute } =
+		useSelect( ( select ) => {
+			const { getBlocksByClientId, getSelectedBlockClientIds } =
+				select( blockEditorStore );
 
-	// Determine whether the panel should be expanded.
-	const { multiSelectedBlocks } = useSelect( ( select ) => {
-		const { getBlocksByClientId, getSelectedBlockClientIds } =
-			select( blockEditorStore );
-		const clientIds = getSelectedBlockClientIds();
-		return {
-			multiSelectedBlocks: getBlocksByClientId( clientIds ),
-		};
-	}, [] );
+			const selectedBlockClientIds = getSelectedBlockClientIds();
+			const _selectedBlocks = getBlocksByClientId(
+				selectedBlockClientIds
+			);
 
-	useLayoutEffect( () => {
-		// If any selected block has a position set, open the panel by default.
-		// The first block's value will still be used within the control though.
-		if ( initialOpen === undefined ) {
-			setInitialOpen(
-				multiSelectedBlocks.some(
+			return {
+				selectedClientIds: selectedBlockClientIds,
+				selectedBlocks: _selectedBlocks,
+				hasPositionAttribute: _selectedBlocks?.some(
 					( { attributes } ) => !! attributes?.style?.position?.type
-				)
-			);
+				),
+			};
+		}, [] );
+
+	const { updateBlockAttributes } = useDispatch( blockEditorStore );
+	const dropdownMenuProps = useToolsPanelDropdownMenuProps();
+
+	function resetPosition() {
+		if ( ! selectedClientIds?.length || ! selectedBlocks?.length ) {
+			return;
 		}
-	}, [ initialOpen, multiSelectedBlocks, setInitialOpen ] );
+
+		const attributesByClientId = Object.fromEntries(
+			selectedBlocks?.map( ( { clientId, attributes } ) => [
+				clientId,
+				{
+					style: cleanEmptyObject( {
+						...attributes?.style,
+						position: {
+							...attributes?.style?.position,
+							type: undefined,
+							top: undefined,
+							right: undefined,
+							bottom: undefined,
+							left: undefined,
+						},
+					} ),
+				},
+			] )
+		);
+
+		updateBlockAttributes( selectedClientIds, attributesByClientId, true );
+	}
 
 	return (
-		<PanelBody
+		<ToolsPanel
 			className="block-editor-block-inspector__position"
-			title={ __( 'Position' ) }
-			initialOpen={ initialOpen ?? false }
+			label={ __( 'Position' ) }
+			resetAll={ resetPosition }
+			dropdownMenuProps={ dropdownMenuProps }
 		>
-			<InspectorControls.Slot group="position" />
-		</PanelBody>
+			<ToolsPanelItem
+				isShownByDefault={ hasPositionAttribute }
+				label={ __( 'Position' ) }
+				hasValue={ () => hasPositionAttribute }
+				onDeselect={ resetPosition }
+			>
+				<InspectorControls.Slot group="position" />
+			</ToolsPanelItem>
+		</ToolsPanel>
 	);
 };
 
diff --git a/packages/block-library/src/gallery/editor.scss b/packages/block-library/src/gallery/editor.scss
index d204d0347d8eb4..62c0eff788746d 100644
--- a/packages/block-library/src/gallery/editor.scss
+++ b/packages/block-library/src/gallery/editor.scss
@@ -117,10 +117,6 @@
 		opacity: 0.3;
 	}
 
-	.is-selected .block-library-gallery-item__inline-menu {
-		display: inline-flex;
-	}
-
 	.block-editor-media-placeholder {
 		margin: 0;
 		height: 100%;
@@ -131,58 +127,6 @@
 	}
 }
 
-.block-library-gallery-item__inline-menu {
-	display: none;
-	position: absolute;
-	top: -2px;
-	margin: $grid-unit-10;
-	z-index: z-index(".block-library-gallery-item__inline-menu");
-	border-radius: $radius-small;
-	background: $white;
-	border: $border-width solid $gray-900;
-
-	@media not (prefers-reduced-motion) {
-		transition: box-shadow 0.2s ease-out;
-	}
-
-	&:hover {
-		box-shadow: $elevation-x-small;
-	}
-
-	@include break-small() {
-		// Use smaller buttons to fit when there are many columns.
-		.columns-7 &,
-		.columns-8 & {
-			padding: $grid-unit-05 * 0.5;
-		}
-	}
-
-	.components-button.has-icon {
-		&:not(:focus) {
-			border: none;
-			box-shadow: none;
-		}
-
-		@include break-small() {
-			// Use smaller buttons to fit when there are many columns.
-			.columns-7 &,
-			.columns-8 & {
-				padding: 0;
-				width: inherit;
-				height: inherit;
-			}
-		}
-	}
-
-	&.is-left {
-		left: -2px;
-	}
-
-	&.is-right {
-		right: -2px;
-	}
-}
-
 .wp-block-gallery ul.blocks-gallery-grid {
 	padding: 0;
 	// Some themes give all <ul> default margin instead of padding.
diff --git a/packages/block-library/src/latest-posts/constants.js b/packages/block-library/src/latest-posts/constants.js
index 70c34448a3bff6..bcb367ce9d7448 100644
--- a/packages/block-library/src/latest-posts/constants.js
+++ b/packages/block-library/src/latest-posts/constants.js
@@ -1,3 +1,4 @@
 export const MIN_EXCERPT_LENGTH = 10;
 export const MAX_EXCERPT_LENGTH = 100;
 export const MAX_POSTS_COLUMNS = 6;
+export const DEFAULT_EXCERPT_LENGTH = 55;
diff --git a/packages/block-library/src/latest-posts/edit.js b/packages/block-library/src/latest-posts/edit.js
index 82f0661d04e40f..95c72ea538b0ef 100644
--- a/packages/block-library/src/latest-posts/edit.js
+++ b/packages/block-library/src/latest-posts/edit.js
@@ -17,6 +17,8 @@ import {
 	ToolbarGroup,
 	__experimentalToggleGroupControl as ToggleGroupControl,
 	__experimentalToggleGroupControlOptionIcon as ToggleGroupControlOptionIcon,
+	__experimentalToolsPanel as ToolsPanel,
+	__experimentalToolsPanelItem as ToolsPanelItem,
 } from '@wordpress/components';
 import { __, _x, sprintf } from '@wordpress/i18n';
 import { dateI18n, format, getSettings } from '@wordpress/date';
@@ -49,7 +51,9 @@ import {
 	MIN_EXCERPT_LENGTH,
 	MAX_EXCERPT_LENGTH,
 	MAX_POSTS_COLUMNS,
+	DEFAULT_EXCERPT_LENGTH,
 } from './constants';
+import { useToolsPanelDropdownMenuProps } from '../utils/hooks';
 
 /**
  * Module Constants
@@ -77,6 +81,8 @@ function getFeaturedImageDetails( post, size ) {
 
 export default function LatestPostsEdit( { attributes, setAttributes } ) {
 	const instanceId = useInstanceId( LatestPostsEdit );
+	const dropdownMenuProps = useToolsPanelDropdownMenuProps();
+
 	const {
 		postsToShow,
 		order,
@@ -227,68 +233,137 @@ export default function LatestPostsEdit( { attributes, setAttributes } ) {
 	const hasPosts = !! latestPosts?.length;
 	const inspectorControls = (
 		<InspectorControls>
-			<PanelBody title={ __( 'Post content' ) }>
-				<ToggleControl
-					__nextHasNoMarginBottom
+			<ToolsPanel
+				label={ __( 'Post content' ) }
+				resetAll={ () =>
+					setAttributes( {
+						displayPostContent: false,
+						displayPostContentRadio: 'excerpt',
+						excerptLength: DEFAULT_EXCERPT_LENGTH,
+					} )
+				}
+				dropdownMenuProps={ dropdownMenuProps }
+			>
+				<ToolsPanelItem
+					hasValue={ () => !! displayPostContent }
 					label={ __( 'Post content' ) }
-					checked={ displayPostContent }
-					onChange={ ( value ) =>
-						setAttributes( { displayPostContent: value } )
+					onDeselect={ () =>
+						setAttributes( { displayPostContent: false } )
 					}
-				/>
+					isShownByDefault
+				>
+					<ToggleControl
+						__nextHasNoMarginBottom
+						label={ __( 'Post content' ) }
+						checked={ displayPostContent }
+						onChange={ ( value ) =>
+							setAttributes( { displayPostContent: value } )
+						}
+					/>
+				</ToolsPanelItem>
 				{ displayPostContent && (
-					<RadioControl
+					<ToolsPanelItem
+						hasValue={ () => displayPostContentRadio !== 'excerpt' }
 						label={ __( 'Show' ) }
-						selected={ displayPostContentRadio }
-						options={ [
-							{ label: __( 'Excerpt' ), value: 'excerpt' },
-							{
-								label: __( 'Full post' ),
-								value: 'full_post',
-							},
-						] }
-						onChange={ ( value ) =>
+						onDeselect={ () =>
 							setAttributes( {
-								displayPostContentRadio: value,
+								displayPostContentRadio: 'excerpt',
 							} )
 						}
-					/>
+						isShownByDefault
+					>
+						<RadioControl
+							label={ __( 'Show' ) }
+							selected={ displayPostContentRadio }
+							options={ [
+								{ label: __( 'Excerpt' ), value: 'excerpt' },
+								{
+									label: __( 'Full post' ),
+									value: 'full_post',
+								},
+							] }
+							onChange={ ( value ) =>
+								setAttributes( {
+									displayPostContentRadio: value,
+								} )
+							}
+						/>
+					</ToolsPanelItem>
 				) }
 				{ displayPostContent &&
 					displayPostContentRadio === 'excerpt' && (
-						<RangeControl
-							__nextHasNoMarginBottom
-							__next40pxDefaultSize
+						<ToolsPanelItem
+							hasValue={ () =>
+								excerptLength !== DEFAULT_EXCERPT_LENGTH
+							}
 							label={ __( 'Max number of words' ) }
-							value={ excerptLength }
-							onChange={ ( value ) =>
-								setAttributes( { excerptLength: value } )
+							onDeselect={ () =>
+								setAttributes( {
+									excerptLength: DEFAULT_EXCERPT_LENGTH,
+								} )
 							}
-							min={ MIN_EXCERPT_LENGTH }
-							max={ MAX_EXCERPT_LENGTH }
-						/>
+							isShownByDefault
+						>
+							<RangeControl
+								__nextHasNoMarginBottom
+								__next40pxDefaultSize
+								label={ __( 'Max number of words' ) }
+								value={ excerptLength }
+								onChange={ ( value ) =>
+									setAttributes( { excerptLength: value } )
+								}
+								min={ MIN_EXCERPT_LENGTH }
+								max={ MAX_EXCERPT_LENGTH }
+							/>
+						</ToolsPanelItem>
 					) }
-			</PanelBody>
+			</ToolsPanel>
 
-			<PanelBody title={ __( 'Post meta' ) }>
-				<ToggleControl
-					__nextHasNoMarginBottom
+			<ToolsPanel
+				label={ __( 'Post meta' ) }
+				resetAll={ () =>
+					setAttributes( {
+						displayAuthor: false,
+						displayPostDate: false,
+					} )
+				}
+				dropdownMenuProps={ dropdownMenuProps }
+			>
+				<ToolsPanelItem
+					hasValue={ () => !! displayAuthor }
 					label={ __( 'Display author name' ) }
-					checked={ displayAuthor }
-					onChange={ ( value ) =>
-						setAttributes( { displayAuthor: value } )
+					onDeselect={ () =>
+						setAttributes( { displayAuthor: false } )
 					}
-				/>
-				<ToggleControl
-					__nextHasNoMarginBottom
+					isShownByDefault
+				>
+					<ToggleControl
+						__nextHasNoMarginBottom
+						label={ __( 'Display author name' ) }
+						checked={ displayAuthor }
+						onChange={ ( value ) =>
+							setAttributes( { displayAuthor: value } )
+						}
+					/>
+				</ToolsPanelItem>
+				<ToolsPanelItem
+					hasValue={ () => !! displayPostDate }
 					label={ __( 'Display post date' ) }
-					checked={ displayPostDate }
-					onChange={ ( value ) =>
-						setAttributes( { displayPostDate: value } )
+					onDeselect={ () =>
+						setAttributes( { displayPostDate: false } )
 					}
-				/>
-			</PanelBody>
-
+					isShownByDefault
+				>
+					<ToggleControl
+						__nextHasNoMarginBottom
+						label={ __( 'Display post date' ) }
+						checked={ displayPostDate }
+						onChange={ ( value ) =>
+							setAttributes( { displayPostDate: value } )
+						}
+					/>
+				</ToolsPanelItem>
+			</ToolsPanel>
 			<PanelBody title={ __( 'Featured image' ) }>
 				<ToggleControl
 					__nextHasNoMarginBottom
diff --git a/packages/block-library/src/post-featured-image/edit.js b/packages/block-library/src/post-featured-image/edit.js
index 05888c41fecf23..6afe2c29e25045 100644
--- a/packages/block-library/src/post-featured-image/edit.js
+++ b/packages/block-library/src/post-featured-image/edit.js
@@ -49,11 +49,6 @@ function getMediaSourceUrlBySizeSlug( media, slug ) {
 	);
 }
 
-const disabledClickProps = {
-	onClick: ( event ) => event.preventDefault(),
-	'aria-disabled': true,
-};
-
 export default function PostFeaturedImageEdit( {
 	clientId,
 	attributes,
@@ -318,11 +313,7 @@ export default function PostFeaturedImageEdit( {
 				{ controls }
 				<div { ...blockProps }>
 					{ !! isLink ? (
-						<a
-							href={ postPermalink }
-							target={ linkTarget }
-							{ ...disabledClickProps }
-						>
+						<a href={ postPermalink } target={ linkTarget }>
 							{ placeholder() }
 						</a>
 					) : (
@@ -430,11 +421,7 @@ export default function PostFeaturedImageEdit( {
 			<figure { ...blockProps }>
 				{ /* If the featured image is linked, wrap in an <a /> tag to trigger any inherited link element styles */ }
 				{ !! isLink ? (
-					<a
-						href={ postPermalink }
-						target={ linkTarget }
-						{ ...disabledClickProps }
-					>
+					<a href={ postPermalink } target={ linkTarget }>
 						{ image }
 					</a>
 				) : (
diff --git a/packages/block-library/src/post-featured-image/editor.scss b/packages/block-library/src/post-featured-image/editor.scss
index 5fab62c571b1cf..3295fe14e62ac2 100644
--- a/packages/block-library/src/post-featured-image/editor.scss
+++ b/packages/block-library/src/post-featured-image/editor.scss
@@ -100,9 +100,9 @@
 
 	// When the Post Featured Image block is linked,
 	// it's wrapped with a disabled <a /> tag.
-	// Restore cursor style so it doesn't appear 'clickable'.
+	// Ensure that the link is not clickable.
 	> a {
-		cursor: default;
+		pointer-events: none;
 	}
 
 	// When the Post Featured Image block is linked,