A similar case appears when the game caches text glyphs on demand and renders as individual sprites
Yes, this is my case exactly.

On screen, this is what is displayed.
ABCDEFGHIJKLMNO
abcdefghijklmno
Except this massive spacing between the letters.
EDIT: Can anyone tell me if this font is the PSX's internal BIOS font? It sure does look like it to me...
you need to change the incremental spacing to be proportional and possibly hack in a static font rather than cache on demand.
It's the part of finding the code responsible for the spacing that is making this difficult for me.
I don't know where to start to find it. It could be either hardcoded or have data in a file controlling each characters spacing. (which I doubt for this case, since they all use the same spacing.)
Is there a place I should put a breakpoint that (in most cases)
should take me to the code responsible for it? If so, where?
As of right now, I can't see why having the full font loaded into VRAM would be beneficial to this. Maybe I will find out as I investigate more. Could you explain the benefit of having it always in VRAM as oppose to having just what is currently needed?
EDIT: So, I have made some slight progress.
Unmodified

Modified

Pretty sure I just nailed it...
Granted, it could be adjusted better. I just need to replicate it for every character...