Hm, your tabs don't have favicons. I can still clearly differentiate tabs because of the spacing, though I guess if you had a lot of tabs with very minimal spacing, you might get some visual ambiguity.
Personally, the previous design was fine and this one is too. Neither has made any meaningful difference to my user experience.
Edit:
Scratch that. I've just noticed that tabs can now have a sort of status line, telling me, for example, that's it's playing something. There was functionality sort of like this before, but this is a nice improvement. Great.
This addon looks good, but I'm too tired to have to relearn new locations of elements, differences in UI, changes in context menus every 1.5 year Mozilla decided to improve shit. I've been using Firefox since Phoenix 2002, but this time I'm giving up. Moved all to Brave Browser.