style(ui): improve padding for VerticalTabItem

[barathraj048]

What does this PR do?

This PR improves the vertical padding behavior of VerticalTabItem in the Settings sidebar to ensure better visual consistency across single-line and multi-line tab labels.

Key improvements:

• Single-line tabs maintain compact spacing
• Double-line tabs receive appropriate vertical padding
• Tab items stretch correctly using w-full
• UI consistency is maintained across different screen sizes

Code changes: The primary intentional change is:

className={`px-3 py-auto max-py-5 h-auto w-full ${

Note on diff size: Additional lines in the diff are due to automatic code formatting performed by Biome/Prettier (import ordering, spacing normalization, fragment removal, etc.). These formatting changes do not modify any logic or behavior.

Visual Demo (For contributors especially)

Before

cal.com.hover.ui.issue.mp4

| After

solved.mp4

-- | --
(Screenshot showing cramped multi-line items) | (Screenshot showing improved padding)

Changes Visible:

• Multi-line items now have improved vertical padding
• Hover/active states remain consistent
• Layout no longer feels cramped for two-line labels

Mandatory Tasks (DO NOT REMOVE)

• I have self-reviewed the code (A decent size PR without self-review might be rejected).
• I have updated the developer docs in /docs if this PR makes changes that would require a documentation change. If N/A, write N/A here and check the checkbox.
• I confirm automated tests are in place that prove my fix is effective or that my feature works. N/A - UI styling change only.

How should this be tested?

Steps to test:

1. Navigate to Settings → Security → Two-factor authentication (or any Settings section where sidebar labels wrap into two lines)
2. Verify the following behaviors:
   • Single-line labels retain compact padding
   • Multi-line labels expand with correct vertical spacing (py-auto behavior)
   • The clickable area stretches to full width (w-full)
   • No shifting, clipping, or overflow occurs
   • Hover and active states remain consistent

Test configuration:

• Environment variables: None required
• Test data: None required
• Expected behavior: Improved vertical spacing for multi-line tab items without affecting single-line items

Checklist

<!-- Remove bullet points below that don't apply to you -->

• I haven't read the contributing guide
• My code doesn't follow the style guidelines of this project
• I haven't commented my code, particularly in hard-to-understand areas
• I haven't checked if my changes generate no new warnings
• My PR is too large (>500 lines or >10 files) and should be split into smaller PRs

What does this PR do?

[cubic-dev-ai]

No issues found across 1 file

[dhairyashiil]

Thanks for your contribution. I reverted this change and applied a correct fix. The previous update added more vertical spacing than needed.

For future changes, it would be great to apply updates only where they are needed.

[barathraj048]

Thanks for the review and improvements!
I appreciate the clarification and will make sure to keep future changes more focused.
Glad to contribute!