Improving rendering of target branch pill

[rebornix]

Testing #8340

How we render

How .com renders

Not suggesting we have to make them the same but the bigger padding around the target branch feels off to me, especially that we have 3 types of pills on the same line.

[alexr00]

Got the same feedback when I showed in standup yesterday. I will make some improvements!

[alexr00]

Changing to this:

On hover:

[bamurtaugh]

Looks great!