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.

<img width="644" height="161" alt="Image" src="https://github.com/user-attachments/assets/1a156a79-6eab-4f30-b9d6-aa0557b0e4b8" />