I think that’s a valid explanation. Gideon emphasises the power of story that comes with the Darksaber - in Rebels Sabine had a compelling story around how she claimed the darksaber and redeemed her previous mistakes, but there wasn’t so much of a story around her giving it to Bo Katan because she felt Bo was more worthy.

This seeming continuity error doesn’t worry me. In season 1 it seemed like they were taking a bit of a liberty having the Mandalorians honour-bound to never remove their helmets, because it worked better for the story, but there was a great explanation provided for that. It’s beginning to look like the same will happen here, although I doubt Sabine will be mentioned by name.