This is the narrative that Square has chosen, though my understanding is that CC2 is doing the heavy lifting on the game with SE overseeing, more like the relationship between SE and Platinum for Nier or indeed Tose and SE for World of Final Fantasy.
These partnerships take many different forms; with Nier and Platinum SE chose to very firmly push it from a PR perspective because Platinum have a very sharp reputation, especially in the West, but with WOFF Tose's involvement was left in the background. It changes from game to game. For FF7 they've acknowledged it but appear to be underplaying it, at least if what I'm told is true.
They also take different forms in terms of how much control a dev has: It's clear that Platinum have a lot of freedom to inject their ideas into Nier, for instance, but WOFF appears to be more tightly creatively controlled from within SE. Who knows where FF7 falls, but my understanding of the situation (which could be wrong!) is simply that they are the main developer doing the actual day-to-day heavy lifting on FF7R while SE staff like Kitase and Nomura make top-level decisions about the creative direction of the game. This is a smart decision: CyberConnect has proven with their string of commercially successful anime tie-ins and the like that they can deliver large scale projects on a time and on a budget in a way SEJ has consistently failed to do in-house.
CC2 is a good studio anyway. There's nothing to worry about.
