Text being clipped with rounded corners in the Lit renderer

We're seeing weird clipping effects. Perhaps there is a corner radius being set incorrectly somewhere?

This is affecting internal clients right now.

Look at the Lit renderer component that handles rounded corners and text rendering. The issue likely involves CSS properties like border-radius, overflow, or clipping. Start by examining the component's styles and the Lit rendering logic. Check for any recent changes to corner radius handling. Reproduce the clipping effect with the provided image as a reference to verify the fix.

Written by the indexing model from the issue text.