It's in a wierd spot but it's still pretty solid. The Stars & Stripes stuff seemed super out of left field and pointless, like he was trying to get himself out of a writing screw-up. And boy do I still love Toga.
Stars and Stripes had a really cool power and it's absolutely a necessary nerf to Shigaraki, who was looking too powerful as written. It's also definitely a huge asspull because he wrote himself into a corner with the Shigaraki powerup. Unfortunate but probably unavoidable without having planned better in the first place.