I've modified the search popup to:

1. Removed the black overlay - No more bg-black bg-opacity-50 backdrop
2. Positioned below the search button - Used absolute positioning with top-16 right-4 to place it below the toolbar

3. Redesigned the interface with:

   • A cleaner header with search icon
   • Search input with built-in search icon
   • More compact layout with smaller buttons
   • Navigation buttons (up/down arrows) grouped together
   • Replace buttons condensed to "Replace" and "All"
   • Case sensitivity toggle as a compact button
   • Results counter styled as a badge
   • Results summary in a subtle gray background

The popup now appears as a dropdown panel below the search button without blocking the rest of the interface, making it more user-friendly and less intrusive.