No doubt about it, they're 100% connected. Banjo Tooie (N64 version) name dropped Mario and Donkey Kong, and Nuts and Bolts even mentions Diddy Kong Racing by name. Log also references a "well known italian gentleman" in the intro of Nuts and Bolts too. They may not show/explicitly state it since legal boundaries are a thing, but they for sure share the same world
Yeah, which is why I'm so flustered when people treat Banjo & Kazooie like they're just another third party character. What other third party characters could claim they're from a Nintendo universe?! (Mario statue in Metal Gear doesn't count haha)
Also, didn't know that from Nuts & Bolts (because I was bored and stopped playing after 10 mins). See Nintendo? Even Microsoft when making their own game still thinks of them as Nintendo characters! (not really, but I wish)
I honestly wouldn't be surprised if the final Smash Direct was in December before the 7th and this month we got a single reveal (69: Incineroar), then late October or November a Lucina/Robin style reveal of 70: Isaac and 70e: Felix and then the Smash Direct revealing 71: Banjo first and then 38e: Shadow, 54e: Medusa (I'm honestly confident Sakurai can make her an echo of Palutena) and 60e: Ken.
It's honestly wishful thinking on my part but I can hope...
I'd be completely satisfied with that, though I feel like Geno should be along with Banjo in the Ultimate Smash game. Banjo, Isaac, and Geno were in the top 3 of the Reddit poll--I think they all should make it in.
Also, I made a post in the general thread of if I had Sakurai Bias, and I did it on Banjo & Kazooie--it was fun! Here it is:
Banjo-Kazooie would get Banjo & Kazooie and Gruntilda as characters (maybe add Conker for another Rare darling from Diddy Kong Racing). Banjo & Kazooie would be a two-in-one fighter who are all-around when together, but could be separated briefly for more powerful attacks (Banjo's bag swing, Kazooie's Wing Whack), but the character left alone would become vulnerable. Their stages would be two travelling stages...
Banjo-Kazooie: Mumbo's Mountain, Treasure Trove Cove, Freezeezy Peak, Mad Monster Mansion, Rusty Bucket Bay, Click Clock Wood.
Banjo-Tooie: Mayahem Temple, Witchyworld, Jolly Roger's Lagoon, Terrydactyland, Hailfire Peaks, Cloud Cuckooland.
The music would be Gruntilda's Lair and Isle o' Hags that would transition to the various themes of the stages like in-game. Mumbo Jumbo would be an assist, and Brentilda would pop up in stages revealing Smash character's darkest secrets. And every song from both games would make an appearance, which it's around 30-ish so semi-possible.
Similar to things we've discussed in this thread, but had fun putting it together.