They limited what pokemon you can have, apparently on the basis of wanting to make it easier to balance.Yeah, people are pissed. I didn't really care since its not a feature I use anyway, so I was surprised to see the backlash to this. I understand why people who play the game for months doing breeding/ competitive play are upset by this though.
Basically it's limited to the regional pokedex.
Which is a terrible decision for a franchise that has had the tagline "Gotta catch them all" for the past 20 years.
https://www.resetera.com/threads/pok%C3%A9mon-from-pok%C3%AAmon-home-can-be-transferred-to-sword-shield-only-if-in-galar-pok%C3%A9dex.122523/