I love me a good wall of text. I just view a few things differently.
I never got the impression even once that Lym would betray the MC or choose the authorities over him while playing. Its been a while since I played but I remember even Nyx straight up told the MC to be honest with her. Now if the MC was afraid Lym would betray him and if the game is not going to give us agency, then show Lym being suspicious. I dont know if this was an issue with how the information was presented to me but the MC felt like such a massive asshole.
It's not necessarily about outright betrayal. But even a simple misjudgement of danger or not considering a certain action, even simple hesitation could get someone/everyone killed. Her bias makes her unfit for the position in my own personal opinion. Could this have been shown better with some possibly suspicious behavior, or maybe a misjudgement (barring her stance towards the authorities itself)? Yeah, maybe. You're not the only one that thought so. It's just to that for me personally this was quite clear. It just shows how some people think alike and others don't I guess.
I have no issues when it comes to playing an asshole. But when the game tries to paint the MC being a good guy despite him acting as a complete asshole, the hypocrisy of it all makes it incredibly frustrating for me to play. Especially given that player agency here is taken away - him being an asshole is a choice that is forced upon us rather than giving us the ability to choose how the MC handles the situation.
My views above kind of lead to my views here. Considering how I think about the demotion/replacement thing as a whole, I don't see this as a dick move at all. I
would be disappointed in the resolution if it was "sorry->5sec->fucking" though...
There is potential in challenging Lym's view on their former superiors by slowly unraveling their machinations or discovering something. There could be a more interesting arc of Lym taking the position back by actually becoming the superior choice again. Or not, idk, but currently her as XO would require some explaining.
I also see no hypocrisy, was it not a valid point that Lym was still too loyal to the wrong people? The situation is not really forced on us, as it is a story point, not a decision. Why would we get agency over that? This game never went
that strongly into branching stories, the effort for that would be humongous. I get how some people
want something like this to be up to them. But it's still a story we are reading, not everything is going as planned or as we want. That's just a part of it. i even dare say it was
meant to feel bad for us. A story may do so.
Edit: Now that I think on it. The whole situation feels really bad for us
because of how MC was painted so far. That's actually a good way of making this a more impactful and jarring decision for MC and us as readers
I can see how this is again something that people might jump to disliking because it goes against their own headcanon but I personally love twists like this, provided the resolution is not something flimsy.