All the implementation I know of all does the same thing: they expand the compressed instruction into a non-compressed instruction. For all (most?), this required an additional stage in the decoder. So in that sense, supporting C mean a slight increase in the branch mispredict penalty, but the instruction itself takes the same path with the same latency regardless of it being compressed or not.
Completely aside, compressed instruction hurt in a completely different way: as specified RISC-V happily allows instructions to be split across two cache lines, which could be from two different pages even. THIS is a royal pain in the ass and rules out certain implementation tricks. Also, the variable length instructions means more stages before you can act on the stream, including for example rename them. However a key point here is that it isn't a per-instruction penalty, it a penalty paid for all instruction if the pipeline support any variable length instructions.
