I think it depends what you mean by acknowledging. Square hasn't managed to depict a single romantic relationship in the entire series properly. (Has any original character ever kissed someone?)
This isn't actually true. While Nomura has never wanted to confirm things firmly for ships with original KH characters other than SoKai, the series has always portrayed the Disney romantic couples as such. Aladdin and Jasmine, Beast and Belle, Aurora and Phillip, Ariel and Eric, Hercules and Megara, Jack and Sally, etc. Of course, I think the only one of those we've actually seen kiss are Ariel and Eric (in the credits scene of KH2). I guess Aladdin and Jasmine do (unshown) in the KH1 credits, too.
is a flop, but mostly because it was dropped right at the beginning of the pandemic. Encanto
came almost two years into the pandemic on the other hand, but I don't think it's considered a flop outright because it has been very successful in streaming, merchandise, and soundtrack / digital song sales. Strange World
is a flop, but it probably has more chance appearing than something like Treasure Planet
or The Black Cauldron
do since Strange World
is 3D and a recent film, whereas those are hand-drawn films which are appearing less and less in KH, and also released so far in the past that there's not much "push" to include them in the series from anyone's POV (Square's or Disney's) as with a more recent film, I suppose. I have a feeling Strange World
could end up being a story that interests Nomura simply because it's about a world that's a living organism
, some new territory for him to explore perhaps--but who knows.
I don't follow PIXAR films as closely, but I don't think Turning Red
is a flop? Lightyear
was, I guess, I don't know about Soul