Not the OP but with my own personal usage, sometimes I'll end up with multiple related commits where I've had to go back and fix a test or correct an issue I missed with an earlier commit. Therefore I commit and squash that into the earlier commit with related changes.

I don't buy that every change should be a separate commit - if changes are related and the commit message covers the changes it makes sense to squash.

Not sure if OP is talking about squashing all commits into one. I have seen people do this and I'm always a bit confused why, similar to your point.