If you bully and push people enough they are going to push back and when or if they win they usually go further than needed, just look at anything in history ever.
100% just look at whats been happening around the globe in the past 2-3 years, without naming anything.
In ACS case specifically, the hatred build up has been more of a slow burn (thats the case for me anyways). I still remember when they had announced that they'll never be an assassin's creed in Japan, disappointing millions of fans across the world at the height on AC's popularity. Then when they saw the tremendous success of Tsushima they quickly changed their word for that cash cow.
But instead of copying an already established formula (The only thing that Ubi are good at), they deliberately chose a controversial protagonist to take a political stance; if you don't agree with this you're either being intellectually dishonest or its beyond your cognitive abilities.
I'm not Japanese and I don't put them on a pedestal like some people seem to do, but it was a
right (yes, I know what I said) of the Japanese people/Japan lovers to get a protagonist from the same country as the setting, just like every previous title has had. It stinks and I empathize because I know I'd feel a way about it too if they were to do the same thing for my country/setting.
Also Ubi don't help themselves by being hyper incompetent and inconsistent in their marketing and research, not to mention their bad monetization practices and tendency to get mixed into scandals has eroded any sympathy or goodwill many had for them.
So yes, I for one see them as a laughing stock, I'm not buying another assassin's creed game for like atleast a decade (After having bought every installment except Valhalla and Liberation), and I think their downfall is well deserved and ultimately a good thing for the industry.