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For a few years now the CA DMV has been concatenating first and middle names on driver's licenses. My license displays my full first and middle names together on one line. If my name were "Oliver Wendell Holmes", for example, it would look exactly like this:

LN HOLMES
FN OLIVER WENDELL

I would prefer to provide my name to LSAC in one of the following formats (they allow FN/optional MI/LN):

FN OLIVER
LN HOLMES

or

FN OLIVER
MI W.
LN HOLMES

Would either of these, given how my license is formatted, be likely to cause problems on test day ("Admission will be denied if the first and last names on your ID do not match exactly the name on your LSAT Admission Ticket.")? My inclination is that it won't, but it's not something I want to argue right before the test. Thanks.

You're way over-thinking this.
You will not have a problem on test day.

They mean "exactly match" like, don't register as Jerry Smith when your license says Gerald Smith, and don't have a married/maiden name mismatch. If you register as Oliver Holmes and Your license says Oliver Wendel Holmes, that's fine.

Thanks!