Fix flash margin in Web IDE

• Draft: Add user setting to toggle between legac... (!98295 - closed)
• ...
• Fix flash margin in Web IDE (!98943 - merged)

What does this MR do and why?

This MR fixes a long standing issue with the flash margin in the Web IDE.

This also supports !98295 (closed).

Screenshots or screen recordings

Before (on master)	This MR

How to set up and validate locally

Make sure you do not have :vscode_web_ide feature flag enabled.

1. Visit Web IDE on a project that already has a REAMDE.md
2. Click the Create file icon
3. Enter README.md as the name of the new file
4. Observe the spacing of the error message that pops up.

MR acceptance checklist

This checklist encourages us to confirm any changes have been analyzed to reduce risks in quality, performance, reliability, security, and maintainability.

• I have evaluated the MR acceptance checklist for this MR.