They needed Sting, Flair, and Goldberg. DDP came in as a stalker that was sniffing Sara's panties and $hit

That's the mindset they had for WCW talent back then.
The last sentence in your summary is the answer though. This is Vince McMahon. He lost his sense of honor long ago. He wanted to do a incest story with his early 30s daughter...he holds grudges against stars that basically kept his ass in business in the 90s and 2000s....he thinks parody wrestling matches with NBA owners is great TV. Think about it. His pettiness knows no limits.