fix(dashboard): correct side nav badge sizing

[alx-xo]

Summary

• Removes side-nav badge styles using scaling.
• Cleans up the remaining stale ReleaseStageBadge size call site.
• The new badge styles matches the older version that was scaled down to 75%

Root Cause

The use of scale-75 had an unintended side effect with flex spacing and truncation. It would hold the space of the full size of the badge. Even with it smaller it would cause truncation to kick in for nav items. This was surfaced when Device Agent is added.

Realated PR

• chore(deps): update moonshine to 1.40.0 for updated Badge #3181

Test Plan

• pnpm -F dashboard type-check
• pnpm -F dashboard lint

---

Summary by cubic

Fixes release-stage badge sizing in the side nav and Observe tabs so preview/beta labels render consistently and no longer cause text truncation. Addresses Linear AGE-2644.

• Bug Fixes
  • Remove scaling, negative margins, and transforms from badge call sites; use internal Badge with size="sm".
  • Remove the size prop from ReleaseStageBadge and delete call-site usages in side nav and ObserveTabNav.
  • Replace arbitrary z-[1] with z-1 on nav links.

^{Written for commit 3d8dbfe. Summary will update on new commits.}

[linear-code]

AGE-2644

[vercel]

The latest updates on your projects. Learn more about Vercel for GitHub.

Project	Deployment	Actions	Updated (UTC)
gram-docs-redirect	Ready	Preview, Comment	Jun 4, 2026 6:32pm

[changeset-bot]

🦋 Changeset detected

Latest commit: 3d8dbfe

The changes in this PR will be included in the next version bump.

This PR includes changesets to release 1 package

Name	Type
dashboard	Patch

Not sure what this means? Click here to learn what changesets are.

Click here if you're a maintainer who wants to add another changeset to this PR

[cubic-dev-ai]

cubic analysis

No issues found across 5 files

Linked issue analysis

Linked issue: AGE-2644: bug: side nav issue with badges

Status	Acceptance criteria	Notes
✅	Update @speakeasy-api/moonshine to 1.40.0 so the library size prop can be used	package.json and pnpm-lock.yaml show the dependency bumped to 1.40.0, enabling the library Badge size prop used elsewhere.
✅	Remove manual badge scaling/negative margins at side-nav call sites (drop scale-75, -my-1 and size="xs" on call sites)	nav-menu.tsx and ObserveTabNav no longer pass size="xs" and have removed classes like 'scale-75' and '-my-1' from ReleaseStageBadge call sites.
✅	Standardize internal ReleaseStageBadge to use Badge size="sm" (use library size prop internally)	release-stage-badge.tsx now sets Badge size="sm" internally and the size prop was removed from the component API.
✅	Replace arbitrary Tailwind z-index classes with z-1 in nav items	nav-menu.tsx replaces occurrences of 'z-[1]' with 'z-1', removing arbitrary inline z-index values.
✅	Side-nav label truncation is resolved (text has the space it needs when badges are present)	The PR removes the manual transforms and sets a consistent library badge size that directly addresses the truncation root cause described in the issue; the code changes necessary for the fix are present in the diff.

_{Re-trigger cubic}