Add hover spacing between options in LocationSelect dropdown

[KartikLabhshetwar]

Issue Summary

The LocationSelect component dropdown menu previously lacked proper vertical spacing between individual options when they were displayed in groups. This created a poor user experience where options appeared cramped together, making it difficult to distinguish between adjacent options when hovering or navigating with the keyboard.

Steps to Reproduce

1. Navigate to an event type creation or editing page (e.g., /event-types/new or edit an existing event type)
2. Locate the location selection field that uses the LocationSelect component
3. Click on the location dropdown to open the menu
4. Observe the spacing between options within the same group (e.g., "Cal Video (Default)" and "Google Meet" in the "Conferencing" group)
5. Hover over different options to see the hover state
6. Notice that options appeared cramped with minimal or no spacing between them

Actual Results

Expected Results

Technical Details

Component affected:

• packages/features/form/components/LocationSelect.tsx

[linear]

CAL-7015