They want to rehabilitate fascism by making it look moderate.
They want to make communism look worse than fascism
They are historically illiterate and think the economic policy of the Nazis was some kind of social democracy with death camps. They stubbornly reject any facts about the symbiotic relationship between the nazis and capitalism.
The political compass is a propaganda device made by a lolbertarian to make "an"cap shit look like the ideology with the most freedom in it. To achieve that they place the Nazis far away from "an"caps and close to communists.
The last time I risked brain poisoning by going on pcm their belief was, as I understand it, that the left-right axis has communists/anarchists as the farthest left and traditional monarchists as the furthest right possibilities. And so liberalism is in the middle of these ideologies. Fascism, being liberalism that's gone mask off, is also in the middle, though with an authoritarian streak to define it as separate from centrist libs.
So there's a twisted logic to it. Of course it's completely detached and incoherent and is deliberate fascist propaganda to sanitize their beliefs. "See, fascists aren't radicals. They're just normal centrists except they want a strong ruler. Don't you want a strong ruler to protect you, my little Amerikkkan? Protect you from the tyrants and the CCP and the immigrants and White Genocide. We'll protect you. Better than that, if you vote for/fight for/die for [insert fascist leader here] you'll be protecting yourselves."
The left to right is economic though. The furthest left of the spectrum represents the absolute victory of the working class over the bourgeoisie and the furthest right represents the absolute victory of the ruling class over the proletariat. Monarchy is not the furthest right, fascism is.
They are just wrong and do not understand fascism isn't remotely centrist economically (or do understand and intentionally lie). They are pretending that it has social elements to it and doesn't utterly crush the working class.
Given that the compass was designed by libertarians to justify the existence of their ideology you should assume that they do know and are intentionally rehabilitating it.