Selected item outline has inconsistent padding across suggestion and code action menus

The selected item outline appears with inconsistent padding across different suggestion/action menus.

In the autocomplete suggestions, the outline is positioned directly around the selected item, with the border radius visible at the top corners.

In the Code Actions menu, the selected item has additional padding around the content, resulting in a different outline appearance.

Since both UIs use a similar selected-item treatment, the inconsistent padding and border radius make the selection styling feel visually inconsistent.

**Expected behavior**
The selected item should use consistent padding, outline positioning, and border radius across similar suggestion/action menus.

**Actual behavior**
The selected item has different padding and outline positioning depending on the menu.