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It started with Third Age Total War for Medieval 2.
That overhaul did exceptionally well and was very popular, and while it was a free mod I believe it ended up being argued years later by Tolkien’s estate that CA ultimately financially benefited from it via sales of M2TW and increased sales in their future titles.
CA was benefitting, financially and otherwise, from an IP that wasn’t their own and the owner of the IP was not. It didn’t much matter that CA did not create Third Age and that it was free.
This is one of a few reasons you usually don’t see mods of Third Age’s kind (ones that change the game into an entirely new game based on another IP) after M2TW. To avoid possible legal scandal and headaches they began to limit the modability of their titles and policed mods more.
Games Workshop has already had its legal issues with Tolkein’s estate and in the past and usually lost those legal battles or settled - hence why “officially” the dwarves stopped being called dwarves and are called Dawi, and they abandoned the “official” use of the term Eldar and call them the Craftworlds instead and the Dark Eldar Drukhari (iirc it had something to do with Tolkein referring to Elves as Eldar in like the Silmarillon or something).
So I’m not surprised if a part of GW’s contract with CA is to outright ban all mods that add elements of non-GW IPs.