diff --git a/setup.c b/setup.c
index f00f6cf2b6..3ade79d245 100644
--- a/setup.c
+++ b/setup.c
@@ -2342,12 +2342,6 @@ int init_db(const char *git_dir, const char *real_git_dir,
 	}
 	startup_info->have_repository = 1;
 
-	/* Ensure `core.hidedotfiles` is processed */
-	git_config(platform_core_config, NULL);
-
-	safe_create_dir(git_dir, 0);
-
-
 	/* Check to see if the repository version is right.
 	 * Note that a newly created repository does not have
 	 * config file, so this will not fail.  What we are catching
@@ -2358,9 +2352,6 @@ int init_db(const char *git_dir, const char *real_git_dir,
 	validate_hash_algorithm(&repo_fmt, hash);
 	validate_ref_storage_format(&repo_fmt, ref_storage_format);
 
-	reinit = create_default_files(template_dir, original_git_dir,
-				      &repo_fmt, init_shared_repository);
-
 	/*
 	 * Now that we have set up both the hash algorithm and the ref storage
 	 * format we can update the repository's settings accordingly.
@@ -2368,6 +2359,18 @@ int init_db(const char *git_dir, const char *real_git_dir,
 	repo_set_hash_algo(the_repository, repo_fmt.hash_algo);
 	repo_set_ref_storage_format(the_repository, repo_fmt.ref_storage_format);
 
+	/*
+	 * Ensure `core.hidedotfiles` is processed. This must happen after we
+	 * have set up the repository format such that we can evaluate
+	 * includeIf conditions correctly in the case of re-initialization.
+	 */
+	git_config(platform_core_config, NULL);
+
+	safe_create_dir(git_dir, 0);
+
+	reinit = create_default_files(template_dir, original_git_dir,
+				      &repo_fmt, init_shared_repository);
+
 	if (!(flags & INIT_DB_SKIP_REFDB))
 		create_reference_database(repo_fmt.ref_storage_format,
 					  initial_branch, flags & INIT_DB_QUIET);
diff --git a/t/t0001-init.sh b/t/t0001-init.sh
index b131d665db..49e9bf77c6 100755
--- a/t/t0001-init.sh
+++ b/t/t0001-init.sh
@@ -584,14 +584,39 @@ test_expect_success 'init with --ref-format=files' '
 	test_cmp expect actual
 '
 
-test_expect_success 're-init with same format' '
-	test_when_finished "rm -rf refformat" &&
-	git init --ref-format=files refformat &&
-	git init --ref-format=files refformat &&
-	echo files >expect &&
-	git -C refformat rev-parse --show-ref-format >actual &&
-	test_cmp expect actual
-'
+backends="files reftable"
+for from_format in $backends
+do
+	test_expect_success "re-init with same format ($from_format)" '
+		test_when_finished "rm -rf refformat" &&
+		git init --ref-format=$from_format refformat &&
+		git init --ref-format=$from_format refformat &&
+		echo $from_format >expect &&
+		git -C refformat rev-parse --show-ref-format >actual &&
+		test_cmp expect actual
+	'
+
+	for to_format in $backends
+	do
+		if test "$from_format" = "$to_format"
+		then
+			continue
+		fi
+
+		test_expect_success "re-init with different format fails ($from_format -> $to_format)" '
+			test_when_finished "rm -rf refformat" &&
+			git init --ref-format=$from_format refformat &&
+			cat >expect <<-EOF &&
+			fatal: attempt to reinitialize repository with different reference storage format
+			EOF
+			test_must_fail git init --ref-format=$to_format refformat 2>err &&
+			test_cmp expect err &&
+			echo $from_format >expect &&
+			git -C refformat rev-parse --show-ref-format >actual &&
+			test_cmp expect actual
+		'
+	done
+done
 
 test_expect_success 'init with --ref-format=garbage' '
 	test_when_finished "rm -rf refformat" &&
@@ -678,4 +703,64 @@ test_expect_success 'branch -m with the initial branch' '
 	test_cmp expect actual
 '
 
+test_expect_success 'init with includeIf.onbranch condition' '
+	test_when_finished "rm -rf repo" &&
+	git -c includeIf.onbranch:main.path=nonexistent init repo &&
+	echo $GIT_DEFAULT_REF_FORMAT >expect &&
+	git -C repo rev-parse --show-ref-format >actual &&
+	test_cmp expect actual
+'
+
+test_expect_success 'init with includeIf.onbranch condition with existing directory' '
+	test_when_finished "rm -rf repo" &&
+	mkdir repo &&
+	git -c includeIf.onbranch:nonexistent.path=/does/not/exist init repo &&
+	echo $GIT_DEFAULT_REF_FORMAT >expect &&
+	git -C repo rev-parse --show-ref-format >actual &&
+	test_cmp expect actual
+'
+
+test_expect_success 're-init with includeIf.onbranch condition' '
+	test_when_finished "rm -rf repo" &&
+	git init repo &&
+	git -c includeIf.onbranch:nonexistent.path=/does/not/exist init repo &&
+	echo $GIT_DEFAULT_REF_FORMAT >expect &&
+	git -C repo rev-parse --show-ref-format >actual &&
+	test_cmp expect actual
+'
+
+test_expect_success 're-init with includeIf.onbranch condition' '
+	test_when_finished "rm -rf repo" &&
+	git init repo &&
+	git -c includeIf.onbranch:nonexistent.path=/does/not/exist init repo &&
+	echo $GIT_DEFAULT_REF_FORMAT >expect &&
+	git -C repo rev-parse --show-ref-format >actual &&
+	test_cmp expect actual
+'
+
+test_expect_success 're-init skips non-matching includeIf.onbranch' '
+	test_when_finished "rm -rf repo config" &&
+	cat >config <<-EOF &&
+	[
+	garbage
+	EOF
+	git init repo &&
+	git -c includeIf.onbranch:nonexistent.path="$(test-tool path-utils absolute_path config)" init repo
+'
+
+test_expect_success 're-init reads matching includeIf.onbranch' '
+	test_when_finished "rm -rf repo config" &&
+	cat >config <<-EOF &&
+	[
+	garbage
+	EOF
+	path="$(test-tool path-utils absolute_path config)" &&
+	git init --initial-branch=branch repo &&
+	cat >expect <<-EOF &&
+	fatal: bad config line 1 in file $path
+	EOF
+	test_must_fail git -c includeIf.onbranch:branch.path="$path" init repo 2>err &&
+	test_cmp expect err
+'
+
 test_done