Well... It varies.
- was a hot new release, with little Nintendo connections. His main demographic is the PlayStation's playerbase.
- heavily pushed DQ11S, especially in the West, but they also have massive Japanese appeal by virtue of being Dragon Quest
- was added because of the Western fanbase's extreme demand for him
- has appeal in places with strong arcade scenes like Japan and Latin America, but he's a smaller character than everyone else. He's likely added because SNK would be easy to get in touch with, both for Smash and for various ports
- are all from Switch games owned by Nintendo, and appeal to the Switch playerbase
- appeals to everyone, thanks to the sheer size of Minecraft
- filled in the gaps with FF7's representation. While it has a Switch port, FF7 is still mostly associated with the PlayStation
To simplify it,
for PlayStation,
for hardcore Smash,
for general Switch,
for everyone,
for Japan (With some push on the Switch's library as a bonus), and
for a low-cost deal with legacy.
The thing about Smash is that there's no end-all be-all criteria for being added. Different characters have different appeals, and the selection's pretty diverse as a result. Though, the way I see it, there's a decent amount of characters who appeal to Nintendo's audiences; Depending on how you look at it, the ratio's somewhere between 4/9 and 6/9. I feel that Nintendo would be inclined to go for their own fanbase regarding Tales rather than an outside fanbase, especially considering that Lloyd's had a decent flow of requests for a while (Including around the ballot days, which Nintendo would've seen).
The thing about Cloud is that he was
unambiguously the most popular by a large margin. FF7 was a massive part of the Final Fantasy brand, while for Tales, it's more mixed. Symphonia really put the series on the map and is still the best-selling installment, Yuri is the most popular protagonist and Vesperia is on the Switch, Berseria is the most recent true release, etc. Cloud was also cited as being the most highly-requested Tales character for Smash; For Tales, that honor goes to Lloyd, even if Yuri's more popular in the context of Tales itself.