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For a long time, Germany treated any mention of nazis or depictions of swastikas as basically infohazards, scp style. You can’t become the fascist if you don’t know what a fascist is, or so the thinking went. Imo a lot of what was really happening was German guilt and attempting to hide history from their youth.
Nope, history wasn’t hidden since '68.
It was about the depiction of swastikas, which is not allowed except for film and art. But it needed a little time to get to the understanding that video games are art.
And it took even longer for companies to make use of that freedom instead of playing it safe.