I wasnt even taking him seriously, I was just remarking that he was technically the first person to call Simon, even before Vergeben. I personally think he's been riding off a personal guess since March, and got on high horse especially after August when it actually did reveal Castlevania.
I especially think he's BS due to his Cloud remark. The project plan was completed in 2015, meaning they likely got all of the rights to use the characters again then, which by extension means that cloud wasnt the last character picked.
I don't think Square is an issue to work with. In fact, I think Sakurai probably had a good time getting Cloud and had a harder time getting the Konami characters, due to them not even using the IPs normally anymore.
What was a problem was the FF music, but the FF7 music isnt owned by Square, so there you go.