Hi,
I was using \setupalign[verytolerant,stretch] so that the mono font does
not go inside the right inline image but after using that command the
inline math seems to spread.

Here is a Minimal Working Example:

ConTeXt  ver: 2023.09.26 18:19 LMTX

\setupbodyfont[10pt, mono]

This is how it should look. \\
When $a, b, c$ are given, two values of $x$ and no more can be found which
shall make the function $ax^2 + bx + c$ vanish; that is, the equation
always has two roots and no more. The roots may be equal or unequal, real
or imaginary, according to circumstances. \\

\starttext

\setupalign[stretch]
This paragraph seems to look fine on 12pt. \\
When $a, b, c$ are given, two values of $x$ and no more can be found which
shall make the function $ax^2 + bx + c$ vanish; that is, the equation
always has two roots and no more. The roots may be equal or unequal, real
or imaginary, according to circumstances. \\

\setupalign[verytolerant, nothyphenated]
It looks even worse when I also use verytolerant and nothyphenated. \\
When $a, b, c$ are given, two values of $x$ and no more can be found which
shall make the function $ax^2 + bx + c$ vanish; that is, the equation
always has two roots and no more. The roots may be equal or unequal, real
or imaginary, according to circumstances.

\stoptext