Looks right — proceed with this hybrid
I'll capture this as the default UI design in the spec. Specific colour choices and exact pixel spacing get refined during implementation.
Layout A's inline badge as default. Power users click "Show alternatives" on any line to reveal B's ranked panel for that line only.
Each line: confidence badge top-right, single suggestion strip below (Accept / Reject / Show alternatives). High-confidence lines have a green border for instant scanning. Bottom bar offers batch-accept of all ≥95% matches at once. The 4th line shows what "Show alternatives" reveals when expanded — B's ranked panel inline.