Icon block: Fix icons becoming too small when padding is applied - #76295

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Thanks for the PR!

Before moving forward with this PR, let's discuss whether the current behavior is truly a bug. See #76288 (comment)

+1 to holding off on this PR until the discussion over on #76288 (comment) runs its course.

Especially given that the user still has full control on the width and presentation of the Icon block for the moment. By that I mean, if a user sets a width on a block, then adds too much padding or border width to eat up that space, they can adjust the width to suit.

I suspect the issue is more with the scenario that the user has just accepted the default width and not made an active selection.

@kannan-ravi, I'd like to close this PR based on #76288 (comment), but thanks for your efforts!