Dear Ajay,
Welcome to the Microsoft Community! Here, we will do our best to offer assistance to Microsoft users.
Thank you for providing a detailed description and I fully understand your problem.
Unfortunately, Microsoft Forms currently has a relatively simplified interface design and the ability to directly adjust the spacing between individual questions or fields in a form is not directly available. This means that you can't freely adjust the distance between elements in the form design interface as you can in some advanced design tools.
I also agree with you that this is a worthwhile feature to add to give more advanced customization options to users who create Forms.
In this regard, I suggest that your Microsoft Forms user feedback channel suggests to Microsoft to add customized spacing or a more flexible layout design.
Here is the feedback link where you can submit feedback on this design by clicking Send Feedback in the upper right corner, and once you've done that, you can send a link to the poll here so that other users (including me) who have had similar issues can vote on this new feature. The more votes will make it easier for the development team to focus on this issue.
Thanks again for your feedback, it means a lot to Microsoft and to users like you. User feedback is what drives us to improve our products.
Best regards,
Ian - MSFT | Microsoft Community Support Specialist