The light on the left slightly pops out of the building and I don’t want that, how could I make it so it is just contained inside the building and does not emit out?
There should be a Shadow property when you select the light source.
Alternatively to what @Crazedbrick1 suggested, you could also try using a SpotLight or a SurfaceLight should that not work. You can change the face of the part the light emits from by changing the Face property.
Instead of making the light range smaller we instead make a invisible part which is our light then move it up
Wouldn’t it go straight through an invisible part?
They mean the light is the invisible part, so it covers the entire room.