I wish they are consistent about it. The friendship CAN work, but it requires that both sides are not interested in each other.
I see it as a retcon. Previously they were made to be a couple because of the Popeye -> Olive Oyl angle of the original Jumpman story. But Nintendo doesn't want the relationship to go anywhere. This then makes Peach look like she took advantage of Mario and friendzoned him against his will, especially obvious with Odyssey.
I think this is an intentional reset of the lore. And to make it believable they would have to stop having Mario trying to woo Peach entirely. They should never have Mario trying to ask Peach for her affection in the last game, if she was going to reject him like that. Let them BE friends in the actual lore. Mario will help her if requested, but he should never again expect anything from her EVER. Mario need some self respect.