Is this an actual contributing factor? I find it hard to believe some vague political ideology popular in wider society is a major issue when it comes to software development
No. It is just a modern version of complaining about women and minorities. "DEI caused this" is the same "I bet it was a diversity hire" whinging that reactionaries have been doing for decades.
The majority of politicians are white and diligently keep their jobs at the expense of women and minorities. The Chinese even have a name for it: Baizuo.
In fact, personally I find it much easier to work with Chinese and Indian "minorities" or women than with the highly paid Baizuo politician.