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I'm not familiar with the example you're referencing. Was it stated this person was only hired for their pronouns or just due to a diversity initiative?
There are people who reveal themselves to be unqualified and incompetent through all types of hiring practices all the time. That does not invalidate the methodology entirely because none is perfect. If it was doing so consistently in a way that can be documented, that'd be different. But if that were the case, for profit companies would drop it on their own without external pressure.
The problem is it doesn't matter what you call it. Affirmative action, DEI, whatever. The people who complain about DEI will complain about that new term. I'm not sure there's a neutral way to describe that if two candidates are about equal, you'll pick the one from a disadvantaged/underrepresented background. Even if you said you're looking for unique perspectives, if it's not a white man who ends up making the mistake, some people will complain that unique perspectives are anti white and racist and hurting the country.
So is having that policy even worth it? I would argue doing blind remote interviews without knowing the persons race and background would be almost as effective without giving ammunition to hate-mongers.
It's not like you have roughly equal candidates for a position often in the first place. And it could also help against nepotism and other unfair practices.