UI Spacing and Copy Issues on Login Screen

[gaghan430]

1. Spacing Issue: The area between the error banner and the “Login failed” message appears cramped and needs additional spacing.
2. Copy Issue: The phrase “Logged in” should be written as two words, with “in” in lowercase.

Should be like this:

Ref: https://datum-inc.slack.com/archives/C061A2SB6AZ/p1764952297557329