@chad could the tags be the same width or do you want them sized by the length of the word? If they can be the same width then it is possible to use a 1 row and 1 column RG with the cell just factionally bigger than the text/input element outside that make you box/group just factionally bigger again. Then in the Properties Editor for the RG untick for fixed width and tick allow multiple columns when stretched.
If that won’t do what you need then this thread appears to have received quite a bit of thought and Gaby refers to a video she has posted on the topic. Best way to offer inline editing for a User?
And this thread shows you how to make them look like tags with code. I know you did not want that but I’m linking just in case you have to resort to it Tip: Converting simple list output to tag-like element