I completely disagree on the Verge thing. Personally, my hope for Banjo and Kazooie became real when Phil Spencer started speaking out for them. That was more real than anything any "leaker" could say. Followed by Microsoft and Nintendo being all chummy. It's lookin pretty good right now.
Obviously when Phil Spencer tweeted the first time, that caught my attention. Reiterating it last year, gave me hope. But many have said they would like their characters in Smash--it doesn't matter until Sakurai wants them. Nintendo and Microsoft can collaborate on pretty much anything--Game Pass, Rare Replay on Switch, etc. and still not have a character in Smash.
So, for me, it was Verge's claim of Microsoft content in Smash that made it not only a possibility, but an indication that Banjo & Kazooie could be in, as I feel a Nintendo/Microsoft collaboration in Smash would need a character, and Banjo & Kazooie is on the top of the list (from my point of view). However, after seeing the base roster of the game, and PP, that led to enormous doubts as to Sakurai's view on characters.
For better or for worse, literally any character could be in Smash if Sakurai wants them to be* (outside of legal considerations). So, while I'm not as certain Banjo & Kazooie would be his choice, it's still the best chance they've had in years.
*Of course, this time around, Nintendo had a list of DLC characters, and Sakurai chose from that. What the list could have looked like, what limitations there were--is up in the air. I could see it going either way, good or bad for Banjo & Kazooie's chances. But, in the end, Sakurai makes the final decision.