The Brits were reading Franco's code, but they didn't tip off the Republicans. They held their codebreaking prowess pretty close to the vest.
Thats because didn’t break Enigma until after the Spanish Civil War was over in 1939.
The Brits as far as I know were not reading Enigma that early. It took Alan Turing and a lot of IQ power at Bletchley House to break those codes and I don’t think it was during the Spanish Civil War.