Tailwind/Nuxt issue – space is missing

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When using tailwind v3.4.3 on tailwind playground space is added b/w span elements

    <span class="bg-slate-800">TEST</span>
    <span class="bg-orange-600">TEST 2</span>
    <span class="bg-yellow-500">TEST 3</span>

Copy Paste the above code on play.tailwindcss.com
You can see the extra space added b/w span elements.

enter image description here

When I try to do similar thing in Nuxt 3 with tailwind installation, space between span elements is missing.

enter image description here

I have already setup edit with nuxt and tailwind configuration, editor link

I have also installed tailwind using nuxt modules ‘@nuxtjs/tailwindcss’, but still the issue persists.

I am currently migrating my project from nuxt 2 to nuxt 3, nuxt 2 project show similar behaviour as shown by tailwindcss playground, but on nuxt 3 its breaking.

Solving this space issue would be a great help to the project.