Would you say making the height taller so that the scrollbar fits nicely on the bottom since im guessing these scrollbars have a fixed height
Not sure what's the right way to fix this. One approach is to have some space allocated for scroll bar but that will make hover does not look good. I also think that scroll bar appears very rarely. Other approach is to dynamically change the height when the scroll bar appears or disappears. Don't know if the latter solution is possible. But will investigate.
If it's possible, ideally the extra space would only appear when needed.
This also happens in the debug hover where the horizontal scrollbar partially covers objects that can be expanded or selected. It's short enough that you can click around it in that case.
The horizontal scrollbar shows up very often in debug hovers for me, so this isn't a rarity.
Also, not sure if this is 100% related, but if not, let me know and I can open another issue. But sometimes the debug hovers open slightly too small for the content so you get unneeded scrollbars... and then often it ends scrolled to the end, rather than the start:

In that image, I didn't touch/scroll the hover, it opened that way (seemingly scrolled to the end, rather than the start). But in this case there is no need for a vertical a scrollbar there at all.
My guess is that this only happens on machines with visible scrollbars by default (Windows, macOS if you turn off the autohide scrollbars) and the content is just slightly too big for the hover.
@isidorn Is debug hovers are related to this issue or are they special?
Debug hover scroll bar is unrelated to this. They are special since they use the tree.
Filed a separate issue for debug hovers - https://github.com/Microsoft/vscode/issues/72144
The editor seems to be unable to wrap namespaces.

Sometimes this makes the text completely unreadable:

I think both solutions (adding space always or when needed) are not good and non trivial. Making it resizable could be a better option. This has been there for long time and I have not got any reports from users after it was filed during testing of this feature. Hence, I would close this as won't fix.
Here's another case of this: https://github.com/microsoft/vscode/issues/109836
Reopening it and assigning to @alexdima.