> It has come to the Courts attention that the law firm of Davis Polk & Wardwell LLP, at which my husband is a partner, advised FTX in 2021, as well as represented parties that may be adverse to FTX and Defendant Bankman-Fried in other proceedings (or potential proceedings).

The key to this is simple. 'as well as represented parties that may be adverse'. (Past and as I say below 'future')

The judge doesn't want her husband's firm to be disadvantaged by the connection such that (for lack of a better way to put it) the firm can't further benefit from the money that will flow surrounding this case going forward for any party that is involved. If a partner's wife is the judge hard to believe that wouldn't be a good reason to not pick the firm 'just to be sure'.