These predicate vectors can usually be loaded and stored with a single instruction, a VSTR_P0. However this instruction will store the entire P0 predicate, 16 bits, zeroextended to 32bits. Each lane of the the v4i1/v8i1 representing 4/2 bits.
As far as I understand, when llvm says "store this v4i1", it really does need to store 4 bits (or 8, that being the size of a byte, with this bottom 4 as the interesting bits). For example a bitcast from a v8i1 to a i8 is defined as a store followed by a load, which is how the code is expanded.
So this instead lowers the v4i1/v8i1 load/store through some shuffles to get the bits into the correct positions. This, as you might imagine, is not as efficient as a single instruction. But I believe it is needed for correctness. v16i1 equally should not load/store 32bits, only storing the 16bits of data. Stack loads/stores are still using the VSTR_P0 (as can be seen by the test not changing). This is fine as they are self-consistent, it is only "externally observable loads/stores" (from our point of view) that need to be corrected.
The test changes here are in pred-bitcast (which is no longer incorrect), pred-ldst (which is obviously a lot larger, but I don't believe will be generated a lot), and masked ld/st. The masked ld/st test we should be able to optimise better with a few folds, and we should not be generating masked ld/st only to expand them like this.