This is a false dillema. Seeing garbage "fixed typo" commits has nothing to do with MRs being squashed or not. Squash merging may be used as a really poor way to clean them up (which happens at a wrong place in the process, leading to loss of actually valuable context), but that's pretty much the whole connection.

Don't present garbage commits to review in the first place and you're golden. It improves not just the history, it makes reviews easier and more effective too. The problem with it: it requires some basic Git skills, which is too much for some professionals out there.