Config options -c in rebase --continue not passed to prepare-commit-msg hook

For some reason neither environment variables nor -c is passed to the prepare-commit-msg hook when rebasing. Other parameters (e.g. -C /path/to/repo) are passed correctly/it's running the command in the correct repo

Reproduction:
1) Create a prepare-commit-msg hook with content
echo "prepare-commit-msg hook"
echo "$FOO"
git config --get hooks.foobar
exit 1

2) rebase a branch with conflicts. After resolving a conflict run:
FOO=bar git -c hooks.foobar=hello rebase --continue

The hook is executed but neither $FOO nor the config are set (both echo an empty line) Output: prepare-commit-msg hook

Expected output: prepare-commit-msg hook bar hello

Git 2.51.0