bug(form-field): Outlined form-field should have enough space to contain floating label

[shhdharmen]

Is this a regression?

• Yes, this behavior used to work in the previous version

The previous version in which this bug was not present was

No response

Description

When using outline appearance for mat-form-field, the floating label overflows out of component itself. The mat-form-field component should have enough space on top to contain floating label. See below screenshot for reference:

Reproduction

StackBlitz link: https://stackblitz.com/edit/rxp9hmcc?file=src%2Fexample%2Fform-field-appearance-example.html

Expected Behavior

The mat-form-field component should have enough space (margin) on top to contain floating label.

Actual Behavior

The mat-form-field component does not have enough space (margin) on top to contain floating label.

Environment

• Angular: 20
• CDK/Material: 20
• Browser(s): Chrome
• Operating System (e.g. Windows, macOS, Ubuntu): macOS

[crisbeto]

Note that this is going to require a ton of screenshot updates internally.