Issue adding tracking branch with sparse checkout in Jenkins

I've replicated an issue we have when running Gitversion (that uses this library) inside a Jenkins checkout step. Jenkins is running with space checkout.
I've created a test repository with the code in question, that I've replicated from the test case https://github.com/libgit2/libgit2sharp/blob/v0.26.1/LibGit2Sharp.Tests/BranchFixture.cs#L719L749
The code in question to create a local branch and set it to track it's remote is this:

            using (var repo = new Repository("."))
            {

                var remoteRefName = "refs/remotes/origin/master";
                var branchName = "master";

                var remoteBranch = repo.Branches[remoteRefName];

                var localBranch = repo.Branches[branchName];
                if (localBranch == null)
                {
                    localBranch = repo.CreateBranch(branchName, remoteBranch.Tip);
                }

                repo.Branches.Update(localBranch, b =>
                {
                    b.TrackedBranch = remoteBranch.CanonicalName;
                });
            }

taken from https://github.com/joaomatossilva/libgitsharp-issue/blob/master/TestApp/Program.cs

The reproduction commands were taken out of a log from Jenkins build

Reproduction steps

Execute the following steps on a clean directory:

git init
git config remote.origin.url https://github.com/joaomatossilva/libgitsharp-issue.git
git config --add remote.origin.fetch +refs/pull/1/head:refs/remotes/origin/pr-1
git config --add remote.origin.fetch +refs/heads/master:refs/remotes/origin/master
git config remote.origin.url https://github.com/joaomatossilva/libgitsharp-issue.git
git fetch --force --progress -- https://github.com/joaomatossilva/libgitsharp-issue.git +refs/pull/1/head:refs/remotes/origin/pr-1 +refs/heads/master:refs/remotes/origin/master
git config core.sparsecheckout
git checkout -f 1bacdbeeda22863bbb8ba8f89dc933246bd4944c
dotnet run --project ./TestApp/TestApp.csproj

Expected behavior

It would be expected to have the same behaviour as
git branch --set-upstream-to=origin/master master

Actual behavior

Unhandled Exception: LibGit2Sharp.LibGit2SharpException: ref 'refs/remotes/origin/master' doesn't match the destination
   at LibGit2Sharp.Core.Ensure.HandleError(Int32 result) in C:\projects\libgit2sharp\LibGit2Sharp\Core\Ensure.cs:line 136
   at LibGit2Sharp.Core.Proxy.git_refspec_rtransform(IntPtr refSpecPtr, String name) in C:\projects\libgit2sharp\LibGit2Sharp\Core\Proxy.cs:line 2076
   at LibGit2Sharp.Remote.FetchSpecTransformToSource(String reference) in C:\projects\libgit2sharp\LibGit2Sharp\Remote.cs:line 135
   at LibGit2Sharp.BranchUpdater.GetUpstreamInformation(String canonicalName, String& remoteName, String& mergeBranchName) in C:\projects\libgit2sharp\LibGit2Sharp\BranchUpdater.cs:line 188
   at LibGit2Sharp.BranchUpdater.SetUpstream(String upstreamBranchName) in C:\projects\libgit2sharp\LibGit2Sharp\BranchUpdater.cs:line 118
   at TestApp.Program.<>c__DisplayClass0_0.<Main>b__0(BranchUpdater b) in C:\temp\git-issue\TestApp\Program.cs:line 25
   at LibGit2Sharp.BranchCollection.Update(Branch branch, Action`1[] actions) in C:\projects\libgit2sharp\LibGit2Sharp\BranchCollection.cs:line 292
   at TestApp.Program.Main(String[] args) in C:\temp\git-issue\TestApp\Program.cs:line 23

Version of LibGit2Sharp (release number or SHA1)

0.26.1

Operating system(s) tested; .NET runtime tested

Windows 10, .Net core 2.2

Start with the reproduction commands and the related test in LibGit2Sharp.Tests/BranchFixture.cs, then follow the stack trace through BranchUpdater.cs and Remote.cs. Compare the sparse-checkout behavior with the expected git branch --set-upstream-to command, and add or update a regression test showing that tracking refs are handled correctly.