Yeah, the whole situation with OGC and Bazzite is rather messy. From my understanding, you have conflicting accounts from two parties: one is from Bazzite and OGC, i.e. Kyle Gospodnetich and the other from Antheas Kapenekakis, the developer of the Handheld Daemon, a tool for configuring handheld devices that Bazzite uses (for now). Antheas' account can be read here.

From what I understand, there was an internal conflict between Antheas and another Bazzite developer (not Kyle), which caused a rift in the team. At the time Antheas was the one in talks with GPD to port HHD to one of their devices. The team was not aware of this and during this time, Antheas was removed from the team. Then, not being aware of the situation at Bazzite, GDP announced the collab and the Bazzite team, was of course unaware of the talks between Antheas and GDP, which is why they denied the whole thing.

Personally, I'm going to stop updating Bazzite for a while and see how this shakes out, because if Antheas' account is to be believed, the other Bazzite developer mentioned above, Derek J. Clark, is ripping stuff out of Bazzite, including HHD in favor of his own implementation Inputplumber, which is allegedly already causing weird stuff to happen like wifi no longer working on some devices.

On the other hand, I'm hesitant to believe everything Antheas said in his blog, because I simply don't know the guy and also, there's also some sketchy stuff in there like mentioning Derek's Inputplumber implementation being "fundamentally flawed" and not even attempting to explain why. If you're going to label someone's work as such, then I feel at least a cursory explanation why is in order. The other is "apologising on behalf of Kyle" and apologising in someone else's name never sat well with me.