I was recently wondering where it was that they outright admitted it. Yes I know it's cartoonishly obvious, but nothing short of an outright admission is enough to get the deliberately obtuse to cede the point.
It's actually not in one of their in-house streams, but an interview of Tom Abernathy on a channel called Deeg.
It's not new that they use the story of the game to create what I can only infer are quasi-voodoo-dolls of people they don't like on the internet (like trolls on twitter, /pol/acks etc) and direct the player character to take them down. Actual straw men. Don't forget that the whole premise of the base game was "Every race has a xenophobic faction and you need to steamroll all of them with the Pact so you can unite Tyria to fight the zombie dragon." Even in the base game it was the exact same shit. They were probably planning to do the same for the EoD LW episodes that since got shitcanned. Good riddance.
The biggest irony is that the one LW episode in IBS that's most praised by a large margin, is the prologue where you're basically just hanging out and chilling with the same people that would turn out to be white nationalism stand-ins later. So the one time people actually had fun in IBS was when they got to hang out with the fat nigress' boogieman version of internet racists.