Inset spacing is best suited for block lists, even though you can apply to inline list as well.

Block list with inset spacing (xsmall) and separators

Flex list with inset spacing (xsmall) and separators

Block list with inset spacing (small) and separators

Flex list with inset spacing (small) and separators

Block list with inset spacing (medium) and separators

Flex list with inset spacing (medium) and separators

Block list with inset spacing (large) and separators

Flex list with inset spacing (large) and separators

Block list with inset spacing (xlarge) and separators

Flex list with inset spacing (xlarge) and separators