As of January 2021, SHA256 repositories are supported, but experimental. They can be created with `git init --object-format sha256`. If I understand correctly, they don't mix at all with SHA1 repositories (i.e. you can't pull/push from/to between SHA1 and SHA256 repos).
Here is discussion [1] on the issue on the Git mailing list at the time with some useful context WRT git. Unsure what current status is. Git 2.29 Had experimental support for sha256.. not sure what it’s current status is, but that was a year ago.
