title: Angular Material Chips appearing as rectangle instead of being Rounded inside a sidenav
body: <p>I created a <a href="https://stackblitz.com/edit/angular-i1v6xt?file=app/sidenav-responsive-example.html" rel="nofollow noreferrer">stackblitz example</a></p>
  
  <p>If you open the side nav and then see the chip on the expansion  panel you will see its rectangular in shape but it should look circular. How do I fix this ?</p>
  
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  <blockquote>
    <p><strong>Edit</strong>: This is there as an issue already on <a href="https://github.com/angular/components/issues/9964" rel="nofollow noreferrer">Github</a></p>
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