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With some help from a comment on the question it turns out that Nuxt has a default.vue and all the other components are mounted in that component at the tag. That tag was wrapped inside a container like:
<v-content>
<v-container>
<nuxt/>
</v-container>
</v-content>
Removing the container removed the padding
<v-content>
<nuxt/>
</v-content>
Source:stackexchange.com