The only reason the Korvac speculation is interesting to me is the Korvac Saga itself which is pretty wild, not the character. And this is kinda devil's advocacy but the thing that is nice about Korvac is they could really do whatever they want with him, he isn't nearly as iconic as Thanos
That said, you're right, there are so many better options, it is hard to understand why they would go that direction, especially right after getting the FF toys back.
Depending on how far in advance they had to start laying seeds for phases four, five, and whatever, it's possible they had to dig up a threat bigger than Thanos with a more limited toy box. And they introduced the original Guardians already, and Thor ended up with the Guardians at the end of Endgame, and that team-up faced Korvac in just his second appearance. Like I said, I'm not vouching for accuracy, just thought it was a fun thing to discuss.