What bad press and what was deserved about it?

My guess is Mario Kart World’s MSRP or merely Nintendo Switch 2 pricing in general.
Also, most people aren’t happy with Litigious Nintendo® though to be fair, the reporting on those stories is often thoroughly irresponsible and largely misleading. It’s easier to get mad about a sensationalized headline than it is to do even a minimal amount of reading.
The pricing, the Key Cards, the lack of 1st party announcements, the patent nonsense, locking VB games you can't even own behind expensive peripherals, bricking people's Switch 2's because they inadvertently bought Used Games that had been copied, etc.
And apparently a lot of Mario Kart fans are pissed that Nintendo patched World to remove their ability to guarantee 3 lap races in online matches. World in general got a rapid negative re-evaluation shortly after launch.
Some (especially YouTube channels and social media accounts) would say Nintendo has been rather "mask off" since the Switch 2 unveil, that the business side of Nintendo finally supplanted the creative one. In light of that, I can't say I'm going to miss the former EA executive leaving NoA.