More like: they got bullied into compliance by a twitter cancel mob. Wizards have recently had a bunch of bad run ins with the twitter cancel mobs over different things and it's clearly starting to affect them.
All the actual diversity and work that wizards have put into leaving the old neckbeard stereotypes behind for 5e behind was already done, but it's literally never enough for groups like this, no amount of effort will ever be enough and no work will ever come up to their impossible standards. Groups like this have already gotten works by actual POC authors writing about their own lives and experiences dropped from publishing companies because they weren't doing it "right" enough. Any kind of works that come out for the diverse audience are picked apart piece by piece until someone finds something even slightly wrong that some person did or is doing and then the hashtags begin. Unfortunately we are now at a stage where people tanking you on social media spreads without consideration for fact checking or context and this does affect brands and their ability to operate.
I really get quite annoyed by the whole "Orcs/Drow are stand ins for black people" argument, because it didn't hold weight in the Tolkien circles, (because the orcs based off mongols, not MENA people, not that that's any better, really) and it shouldn't hold weight in D&D, because, amazingly, we already had black people in D&D and they are usually called humans, but here we are.
In conclusion: Twitter is a hellsite and only one rung above the youtube comments section; and cancel culture is just groupthink 2.0 and needs to fucking stop.