String type casting error during concatenating

What happened?

I have a very large number of data sets (6840) that I want to concat over 3 dimensions. An example of one of the dataset is showed below:

I concat with:

        (
            xr.concat(dss, "case")
            .set_index(dict(case=["wave_seed", "site_id", "damping_case"]))
            .unstack()
        )

after concatenating my dataset looks like this:

Note that 'NC100 (OSS)' has tuned into 'NC100' and 'base_case' has turned into 'base_c'. This is due to truncation since the dtype also change from U9 and U11 to U5 and U6. If I add the following before concating this issue is resolved.

                ds['site_id'] = ds['site_id'].astype("U12")
                ds['damping_case'] = ds['damping_case'].astype("U10")

I cannot reproduce with a smaler number of datasets so not sure how to reproduce this bug.

What did you expect to happen?

No response

Minimal Complete Verifiable Example

# /// script
# requires-python = ">=3.11"
# dependencies = [
#   "xarray[complete]@git+https://github.com/pydata/xarray.git@main",
# ]
# ///
#
# This script automatically imports the development branch of xarray to check for issues.
# Please delete this header if you have _not_ tested this script with `uv run`!

import xarray as xr
xr.show_versions()
# your reproducer code ...

Steps to reproduce

No response

MVCE confirmation

• Minimal example — the example is as focused as reasonably possible to demonstrate the underlying issue in xarray.
• Complete example — the example is self-contained, including all data and the text of any traceback.
• Verifiable example — the example copy & pastes into an IPython prompt or Binder notebook, returning the result.
• New issue — a search of GitHub Issues suggests this is not a duplicate.
• Recent environment — the issue occurs with the latest version of xarray and its dependencies.

Relevant log output

Anything else we need to know?

No response

Environment

INSTALLED VERSIONS

commit: None
python: 3.13.3 (tags/v3.13.3:6280bb5, Apr 8 2025, 14:47:33) [MSC v.1943 64 bit (AMD64)]
python-bits: 64
OS: Windows
OS-release: 11
machine: AMD64
processor: Intel64 Family 6 Model 186 Stepping 2, GenuineIntel
byteorder: little
LC_ALL: None
LANG: None
LOCALE: ('English_United States', '1252')
libhdf5: 1.14.6
libnetcdf: None

xarray: 2025.6.0
pandas: 2.3.0
numpy: 2.2.6
scipy: 1.15.3
netCDF4: None
pydap: None
h5netcdf: 1.6.1
h5py: 3.14.0
zarr: 3.0.8
cftime: None
nc_time_axis: None
iris: None
bottleneck: 1.5.0
dask: 2025.5.1
distributed: 2025.5.1
matplotlib: 3.10.3
cartopy: None
seaborn: 0.13.2
numbagg: 0.9.0
fsspec: 2025.5.1
cupy: None
pint: 0.24.4
sparse: None
flox: 9.11
numpy_groupies: 0.11.3
setuptools: 80.9.0
pip: 25.1.1
conda: None
pytest: 8.0.2
mypy: 1.16.0
IPython: 9.3.0
sphinx: 8.3.0

Start with the reported xr.concat, set_index, and unstack entry points and investigate how string dtypes change when concatenating thousands of datasets. Reproduce the truncation with a complete, runnable example and verify that the resulting site_id and damping_case values retain their full strings without manual astype calls.