As a San Diego native and having a tendency to dig deeper into most glorified stories in the media, I have a slightly different view of this story. While I agree with you that bias, racism, and homophobia are all ugly behavior, I think that there is more to this story.
Here is how I see it from a business/marketing stand point. First Landon Donovan has been trying to break into the San Diego soccer market for several years and has had zero success until now. His MLS expansion failed, he gets a 2nd tier expansion team playing at a rented college stadium, and then SD Loyal lost out on the Sports Arena revamp. Better than nothing I guess. Everyone in San Diego lived through the hype of the San Diego Loyal build up, great things were expected and promised. LD would lead the Loyal to the promised land, San Diego would finally matter. When things didn't work out quite like they expected with covid, racial justice movement, and no games for fans to attend I believe that the team found another way to matter beyond playing good soccer. They would be the most woke team is the USL, everything from their jerseys to every team statement and media appearance. So did it really matter if they made the playoffs the first year. Apparently not, they think that being the most woke team will finally make San Diego matter. We will see if that's enough to keep their fans paying to see forfeits next year. Maybe they can boycott the whole season next year, and show us all how woke they really are. It appears that they subscribe to the Trump school of media coverage, any press is good press.
They have to be financially viable in the end and forfeiting the playoffs their first year is not they way to do it. I just wonder if there will be a second season.