you can to some extent control the density with the distance tolerance. In your case you have it set pretty tight at .001 units. If you are working in mm, this is tight indeed. Clearly if you need that, you need it… but if you don’t you can lighten up a bit on the distance tolerance and get a less dense result.
Hello- In addition to Kyles commant, I would say that Refine can be overzealous - what I often do is match without refine but with History. Then turn on EdgeContinuity > Distance and see where the biggest gap is - InsertKnot in that area - preferbly with the Midpoints option, and let the match and EdgeContinuity update. Continue as needed to add the minimum nuber of knots where they are needed.