The thing is, it's very easy to explain. Fire Emblem has had issues with including older people, or people that don't look like Hollywood stars. This is just the most extreme example of that: ugly women can't exist in the games at all. I know the trope of making your villains ugly is another whole can of worms, but it's still better than this.
To put it simply: they respected the original game enough not to mess up with the garbage map design too much, but they couldn't handle an ugly witch in their game.
Legends about magical creatures are, not magical creatures. Fire Emblem doesn't take place in the middle ages, it takes place in a fantasy world inspired by the middle ages. The historical accuracy argument works both ways: if the devs are willing to disregard it when including things like pegasi, they could just as well disregard the rampant sexism of the time. To their credit, they already did it in part (Clair was a knight, IIRC), but they could have gone the extra mile.Dragons and other mythological elements found in legends (or Game of Thrones) weren't a thing either, yet those are still elements of the middle ages.
Fair enough for the Nuibaba redesign (but yeah, not enough to say it's full of "sexism"), although all characters have been redesigned and look prettier/different from their OG designs with a very 80s vibe.
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