According to the NPR article about this: "The judge also objected to a requirement that the monitor selection process adhere to the DOJ's diversity and inclusion policy."
So it seems as if the judge doesn't like something the DOJ routinely has, because the judge is saying the court should have a large part in deciding who the overseers are.
The judge brought up DEI. Neither of the parties seem to have, besides what seems to be a standing policy.
https://www.npr.org/2024/12/05/nx-s1-5217960/court-rejects-b...
I agree with you, it would be very odd (even as someone who is generally pro DEI) to include it in this provision.