It fundamentally does address the point you made.
No it doesn't. The point I made was that they had no plans for DLC, and thus are leaving money on the table. This is objectively true. The fact that they decided to go for a sequel after the fact has nothing to do with the point I made. Your point with the sequel is in the context of "oh shit our game is a success we should make a sequel!". My point is in the context of "Hey I'm pretty sure this HL game we're making based off of one of the hugest IPs in history is going to sell well, so let's queue up some additional things for the fans to buy in the months after release".
What they are doing is they are deliberately putting all of those resources directly into the sequel, rather than splitting their team and spending a bunch of time on DLC. You are trying to make an argument that they are handling their business badly by not making DLC. Just because you personally want DLC and demand it, doesn't mean they are somehow bad at running their business simply because you aren't getting what you want.
Honestly they are better off by fast-tracking a sequel and getting it going quicker, and thus releasing it sooner. There is far more money to be made from a $70 Hogwarts Legacy II, than inexpensive piecemeal DLC for the first one, that takes time and energy, & content, away from what would otherwise end up in the sequel.
I don't see any failure here, only someone who wants DLC and is disappointed they are not getting it.
Again, this isn't my point.
Answering the following yes or no questions will illuminate my point.
Does a company in a capitalist economy want to make money?
Does a company that wants to make money have plans in place to re-monitize its product after launch? (In the context of games, this would be DLC)
Would a company make more money overall by selling just a game and its sequel, OR a game, its sequel, and multiple DLCs in the 5 year interim between the game and the sequel.
Did WB fail to optimize their profits by not prepping DLC for the post-release window in addition to greenlighting a sequel that won't be out for years?