“Screwed them over” may have been a bit strong, but as you mentioned WotC laid off a bunch of devs. The important part is that they were devs who worked directly with Larian on BG3. This is more likely than not also the reason Larian halted work on BG3 DLC. The public statement was that they lost their motivation, but it’s no coincidence that the DLC was cancelled very close to the payoff announcement. There are also the backhanded remarks that Swen has made about WotC watching him. It really sounds like Wizards is trying to control the narrative and make it look like the parting was amicable.