This effort seems like it's part of the ruthless approach to controlling costs that slowly strangle a company from within.
I believe WoW is the #2 property (after CoD) at Acti-Blizzard and it's clearly changed from one of delivering a game to simply extracting as much money as possible from each customer much like how almost all mobile games do.
The state of California's complaint is bad. I mean really bad. The fact that 3-4 different people from AB all released different statements in the last week should tell you exactly how bad it is. That's classic panic mode. There should only be one.
This latest move tells you the company believes it will blow over and they're looking to do the minimal required to appease the detractors and get back to business as usual without having to pay people more or pay out a bunch of lawsuits.
Honestly, the heads of J Allen Brack and Bobby Kotick in particular should roll over this lawsuit.
[1]: https://www.youtube.com/watch?v=NlBjNmXvqIM
EDIT: commenters have noted (correctly) that I overlooked Overwatch. This was a significant release but it seems to also have waned in popularity and Overwatch 2 is inextricably going in some weird PVE direction.
Other than that you have a poor received Diablo sequel, a series of lackluster to bad WoW expansions, a disastrous Warcraft 3 remaster and complete abandonment of the RTS genre that propelled them to success in the first place.
WC3 Reforged ("Refunded") was significant in that it was not only underwhelming and plagued with problems it made the original game worse with a forced download and loss of functionality.
The most significant change however was Blizzard not wanting a repeat of missing the MOBA boat with Dota 2 by adding a condition that all the IP for third-party maps belong to Blizzard, completely killing that ecosystem.