The contractor put new drywall over the old one I had. I now have about
3/4" of drywall. But all the old electrical boxes(metal) are now very
recessed to the point I have to bring out the switches and outlets with
spacers. THe only problem here is that now, the guts of the switchs and
outlets that were before inside the metal boxes now are near the cut
areas of the drywall opening.

Is this a fire hazard? Many switches spark when turned on or off.

What should I use to fire fire proof the Sheetrock around the switch or
outlet? The metal boxes don't come all the way the out to protect around
the Sheetrock.

Should I user silicone? Metal/foil duct tape?

Any help appreciated!!