One does wonder if they’re regretting announcing this as Baldur’s Gate III and not giving it another title (someone suggested Baldur’s Gate: Rise of the Illithids). Making it a numbered sequel means there are expectations for it to follow the originals to a certain extent, and keep it reasonably close to a D&D ruleset. You’re immediately engaging a couple of devout and opinionated fanbases. It seems like those are restrictions Larian would have been happy to do without, having the freedom to make the game they way they like... But on the other hand there’s the prestige and inherent hype associated with the series, which they can surely capitalise on. I’d love to know whether it was a Larian or WotC decision to call it a sequel.
If their intention was to do a DOS3 with FR skin they would be better accepted with a brand new IP.