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When I start to fill out the applications, there is a massive space between the first and second lines, meaning that even if I dont exceed the text limit, it overlaps with the following and preceeding questions. Should I still fill it in up to the text limit? Will it still look like this when submitted?

For the most part, issues you see while filling in the app do not appear in the actual application as AdComs will see it. Before you can submit any application, LSAC makes you preview the app in PDF. You'll be able to see any issues in formatting. If you see a problem, you can go back to the application screen, fix it, and preview again before the final submittal. You can see the PDF and fix any problems as many times as you want.

Before you finally submit you get to preview the pdf just as the adcomms would see it. You can make edits after that.

Thanks for the quick and helpful responses!