With 3.5, there still doesn’t seem to be a way to change the vertical position of condensed rests, right? I happened to find a workaround, but it’s really finicky and buggy.
In write mode (non-condensed), first select a rest and use ‘remove rests’. Then manually place a new one in its place: use the ‘force duration’ tool for this. For some reason, in the condensed score, this rest can now be selected and edited: its vertical position can be changed with the ‘rest pos.’ property option and it will show as such in the condensed score. However, the rest tends to jump around if you change in-and-out of condensed mode – the setting remains saved in the properties panel but the rest wants to move back to its original location. Should you want to try this workaround, leave it as the very very last stage of work for your project!
In any case, this is nothing but a last resort option (it’s really slow and annoying to implement) before the issue is fixed in a patch, hopefully very soon.