TL;DR: Hashicorp send DMCA to OpenTofu group accusing them of duplicating copyrighted code. Turns out Hashicorp copied the code to look like OpenTofu.
All of this makes sense when considering Hashicorp is rumored to be looking to sell (https://www.bloomberg.com/news/articles/2024-03-15/software-company-hashicorp-is-said-to-weigh-potential-sale).
The pressure is on the minimize alternatives and maximize profits.
With all this combined I now consider Hashicorp to be a trash level vendor. Avoid at all costs. Migrate away as soon as possible.