Japan is like rural Ohio, they're culturally a few years/decades behind the rest of the world. Wokeshit is dying a deserved death in the West (but we have a long way to go before we're fully rid of it) but in Japan they're still approaching the derp stage.
Also, remember that the CCP is actively trying to subvert Japan with communist manipulation (like Jewish manipulation, only somehow dumber and soysauce flavored) and their elite schools like Tokyo U are apparently as pozzed as Harvard / Toronto / Yale / etc. There is hope tho, it's much more culturally acceptable to be racist / xenophobic / nationalist / etc in Japan, so their most recent efforts to import their own replacements were met with a whole shitload of people telling them to fuck off and die.
The important thing to remember is that Yuji Horii openly made fun of this shit with Toriyama's old editor live on air. They went complete thermonuclear DFE on it and the Woke Defense League tried to AKSHUALLY it away ("AKSHUALLY they translated this single kanji wrong making a single unimportant word different in this 5 minute clip THE ENTIRE CLIP IS WRONG NOW GO AWAY") but, yeah.
We'll eventually find out there's a Sweet Baby Inc style consulting firm wormtounging these companies about how "Americans won't buy your game if you don't pander to insane leftist women in California who never buy games," probably after a major IP failure. The real problem is the two publishers (Nintendo / Sony) seem to have been subverted, so it's going to get a whole lot worse and stupider before it gets better.