Exactly. The KSP2 Kraken is still recognizably The Kraken™, and it's a meaner Kraken at that. So that leaves us with two possibilities:
The starting point for the KSP2 physics sim is the KSP1 physics sim. The code was largely transplanted from the old game to the new game. If that's the case, why has it regressed so severely?
The starting point for the KSP2 physics sim is Unity itself, i.e. the physics sim has been reimplemented from scratch. If that's the case, why is the Kraken back?
If the answer to that question is "limitations of Unity," then what was the point of reimplementing the physics sim? KSP1 physics sim had the benefit of 12 years of iteration. It was battle tested. Why throw that away just to recreate all the same issues, many of which the old one had already conquered?
If the answer to that question is "well the rest of KSP2 is too different from KSP1 to simply port the physics engine," then why set the expectation that the physics simulation would be improved over the first one?
That's my real question here. If they thought the KSP2 physics engine was going to be a better foundation, what went wrong? Can it still be salvaged? On the other hand, if they knew it was going to be worse on launch, why talk about it at all?