I think the most likely explanation for Hector is that he's retarded and was taken for a ruse cruise.
Byuu probably posed as the "anonymous friend" who somehow knew David Ginder's personal address, workplace and next of kin contact details (as Hector himself admitted that he didn't know these details - he met up with Byuu irl but Byuu was very private). "Anonymous Friend" claimed to have been on the call with Byuu but listened to him die and stayed on the call for 45 minutes afterwards (out of "shock"), thereby guaranteeing that Byuu
must be dead and could not have been rushed to hospital, and disclosed this via a GoogleDoc that was shared with Hector. Subsequently "anonymous friend" told Hector he'd spoken to the police. He also told Hector he had Byuu's passport (somehow) and had been instructed to post it to verify the death, but decided not to, and that he had Byuu's death certificate.
Hector had started getting heat about taking everything this "anonymous friend" said at face value after the anonymous GoogleDoc, so decided to fudge the details and claim that he himself had personally spoken to the police.
"Wayne Beckett" then popped up to say he'd confirmed Byuu's death separately. Wayne Beckett is a real person (a boomer with limited internet presence who has a now tenuous connection to Byuu) but this guy (who throws around words like "incel") claimed to be his employer based in the "Hong Kong office" and was notfied that police "broke in" to Byuu's apartment. Likely this was Byuu posing as some random guy he used to work with, and so assumed people wouldn't spot the changes to business structure (or just didn't know, since all he did was product development and didn't pay attention to whatever the admin team said). He claimed he had somehow obtained a photo of Byuu's ACTUAL corpse, but wouldn't post it, and then posted a photograph of a cheap urn that had been customised to have his name on it (but no supplementary proof, not even a hastily mocked up memorial service pamphlet).
Hector at this point was convinced Byuu was dead because Byuu had said he would an hero and hadn't been online since, and nobody would go on the internet and tell lies. So he's gone into denial about any inconsistencies in the story and doubled down on the details he's fudged. Hence the post-hoc rationalisations about the US Department of State, lack of obit and insistence that he still has the death certificate etc.
I don't think they will until a smoking gun is found. Something like a photograph of him in Japan being posted or a family member saying he's still alive and they wish people would stop harassing them over it. Until then it's all hearsay and it makes them look bad in twitter's eyes to buy into "Kiwifarms gossip". Until Byuu is proven without a shadow of a doubt to be still alive and perfectly well they won't start doing retractions.
Even if a photo of Byuu is posted, it won't matter, because they'll just claim it isn't him but someone who looks like him. If Byuu resurfaces and flat out says he faked his own death, the claim will then be "KiwiFarms harassed him so much that he considered suicide and decided to fake his own death to get away with it" and "KiwiFarms has killed others!".