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Currently, the Advanced > Use condensed fonts configuration option allows long ref names to be visually compacted by means of using a condensed font variant. This happens both in the commit graph and the branches sidebar.
However, the option gets overridden in the commit graph view if the Commit History > Ref indicators option is set to "Show full ref names". In other words, the latter setting prevents condensed fonts from being used in the commit graph, even when "Use condensed fonts" is activated. (The branches sidebar is unaffected).
IMHO it would be more intuitive and consistent if long branch names got the condensed fonts in both the commit graph and the branches sidebar, whenever the "Use condensed fonts" option is selected in the settings, and regardless of the value of the "Ref indicators" option.