What is the first step to hide or show thumbnails in the Project panel?

To hide or show thumbnails in the Project panel, selecting Thumbnails from the Project panel menu is the correct first step. This option provides a direct interface element that allows users to toggle the visibility of thumbnails, making it a clear and accessible choice for achieving this functionality. The Project panel menu is designed to give users various options related to how they view and organize their media, and the thumbnail setting is specifically included for ease of access.

This method also ensures that all users, regardless of their familiarity with keyboard shortcuts or specific right-click options, can easily find and execute this action. It streamlines the process and enhances the overall user experience within the project management interface. Other methods, while potentially functional, may not provide the same level of clarity and ease for adjusting thumbnail visibility.