D-Rezzed has a very short article featuring the tweets from Mark Kern about how Diablo 2 Resurrected's new art style is actually censoring the original game. How? He specifically mentions the Trannazon criticism that many players have made. There's also a video with all the citations and summaries of what the allegations are.

The Amazon was always revealing. In fact, we fought hard to keep it that way as part of the them, as there was some push to change it, even back then.

Sucks to see something we fought for get erased in a souless, corporate remaster.

— Grummz (@Grummz) April 13, 2021​

While the assertion is made that they're making these changes to appeal to the Chinese market, that doesn't explain the changes to the Paladin at all. Last I checked, I don't think the Chinese government would like that change either.

Edit: Ed123 pointed me to this tweet from Kern as well as this article on NicheGamer.

Why did Blizzard take issue updating the graphics with sexual elements, if they did not object to showing those same elements with the original graphics? If they knew players would object to modifying the original designs, why stray from them when updating them for Resurrected? If keeping the original graphics is going to keep the game’s rating at M for Mature, why bother censoring at all?​

Why indeed. If it's so offensive you need to censor the new graphics up, why include the origiinal graphics with the remaster? That's another great question.