Missing padding from 2nd level child items display

@dreamleaf,

For testing purposes, I added padding.

I've attached two screenshots: one without the display border, which does not look well, and one with the border.
As I tested, there are two scenarios: with and without the Display Mode border. So I divided it into two points.

1. Display Mode has a border.
When we add padding to the second child, it looks excellent if Display Mode has a border.
2. Display Mode without Border.
However, if Display Mode does not have a border and we add padding, it will look weird.

So, in my opinion, the second child looks terrific without any padding.

Thank you!!

I just get a fresh pull of 11.x-dev branch, But I'm not able to reproduce this issue. @dreamleaf or @Hetal.Solanki can you please elaborate more how to reproduce this issue. Because I followed all the steps which is mentioned earlier.

@Meeni_Dhobale Apologies, I'll add this to the issue, but I spotted this in the experimental version on a 10.3.1 install.

I assumed that due to the requirement to work on issues on the highest version, it would have been backported if fixed.

@ahsannazir I notice you went for a smaller padding increment of padding-block-start: var(--admin-toolbar-space-8); - to my eye this still looks uneven between the top and bottom of UL. It's very minor, and probably needs a space of 10, but the variables increment in 4's, so neither is 100% correct.

As my original issue, I would still recommend using the 12 padding size.

From what i see here
https://www.figma.com/design/VCPAxetieAC2pzw7hgX3ij/Drupal-Admin-UI---De...

This padding top was never designed.
Probably i'm wrong.
Needs designer review here.