Collapsed mode requires extra Enter key stroke and it's case sensitive
I wish collapsed mode could work just like expanded mode where you type for instance 'term' (for terminal), choose what you want with DOWN key and press ENTER just once to open the given application. What we have instead is this:
In the first part of the video you'll also notice that when we go down in the drop down using the keyboard, the icon at left doesn't get updated -- maybe this is related to main issue I'm talking about.
This issue started to happen when the method xfce_appfinder_model_fuzzy_match() was introduced.
In the second part of the video you'll notice that collapsed mode is case sensitive (which doesn't make sense), while in expanded mode it's case insensitive.
Please, to better test this clear your appfinder cache (~/.cache/xfce4/xfce4-appfinder).