If I compile the following example in texlive 2023
with LuaTeX, Version 1.16.0, Development id: 7567
then only the first part of the link on the first line has a link
margin, in the following line the link is tight around the text:

\hsize=1.5cm
\pdfvariable linkmargin3pt
\noindent\pdfextension startlink
            attr {/Border [0 0 1]}
            user {/Subtype /Link
                  /A <<
                    /Type /Action
                    /S /URI
                    /URI (http://luatex.org/)
                  >>}%
         Link Link Link Link Link Link Link Link Link
         \pdfextension endlink

\bye

In texlive 2022 there is no problem.