What's not happening is killing off the most popular and marketable Star Wars character in decades. But it does raise questions as to the state of Baby Yoda during events we know to have past, being that the Sequel Trilogy came and gone.
I think Palpatine already had his clone body/bodies ready to go since before RotJ, being the type of guy he is. This 'Jedi Clone' army may be Gideon's own side ambition. The series seems to deal more with Mandolorian lore than the general track of SW canon given the main character and the Dark Saber.
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