This fixed the issue for me. Thanks for the tip! 
I added the padding a long time ago because I prefer some space at the top of the editor. Too bad we can’t have both but not a huge deal.
This is not fixed in the latest release 
+1 this issue is becoming really annoying.
I use a split editor and can only view the suggestions on the left side. The right side is cut-off at the window border.
For Reference:
Mac M1 Max, 15.1.1
Cursor Version: 0.43.6
VSCode Version: 1.93.1
Still annoying and broken
It still looks like this for me
same issue in the latest release