It's not even known as the warehouse district though, so again, what are you even talking about?
EDIT: And yes, I know the jacket guy drops the phrase "warehouse district" once , as "a warehouse district?" not "THE warehouse district". One guy going "oh, maybe there's one?" is not "OMG EVERY NPC SHOULD KNOW THIS".
Nobody is saying EVERY NPC SHOULD KNOW EVERYTHING.
I loved Shenmue at the time, but watching this is painful, and not just because they don't know how to play. I don't know where the warehouses are in my town, but if you asked me about warehouses I could tell you more than "I DONT KNOW WHAT A WAREHOUSE IS SORRY" like the inhabitants of sakuragaoka and dobuita do. Literally every question in the game is answered not just in an uninformative way, but an utterly baffling way by nearly every inhabitant. Do I expect everyone to know where the tattoo parlor is? No. But I bet they could tell you where the seedier parts of town are that it might be located, for example.
The issue is that it's literally all or nothing, the NPC is designed to tell you exactly what to do in that situation, or they act like the most uninformed person in the world at all times. There's no middle ground, which is what makes it hilariously stilted and unrealistic (along with the voice acting and translation of course). You're right, there aren't any warehouses in Dobuita, clearly, so why doesn't anyone just say "There aren't any around here, but there are lots in (neighboring town)"? You claim they don't know about it, but clearly there's a fucking bus that connects the two places, people presumably work there or visit there, more importantly I wasn't aware that people were generally considered that insanely dense about the world around them. I rarely visit the nearby towns outside of the city I live in, but I could certainly tell you something about them. Similarly, Ryo himself has presumably lived here his entire freaking life, and yet he knows LITERALLY nothing about the area.
In a game where 90% of what you do to advance the plot is blindly stumble around talking to people to get 'clues', the canned non-answer responses are basically the entire way they pad the game out. The things Ryo gets stuck for days figuring out are not things that a normal person would take so long to decipher, and asking people where X is only to hear "Sorry. I don't have time" or "I don't know what a Tattoo is" is pretty unbelievable for a game that is ostensibly about being immersed in a world.
All that said: I wish they'd engage more with the fighting, it's pretty fun if they actually were going out of their way to train and learn moves. Also, forklifts incoming and that is definitely when the game is at its best.