I have looked into this issue and it seems that this is a bug.
For now I can suggest a small work-around for this. Set the display mode to inside and set an appropriate distance.
I have logged this as a bug in out PITS. Here
you can track its status and vote for it. I have updated your Telerik points as a sign of gratitude for bringing this issue to our attention
All the best,
the Telerik team
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