What you're seeing is the end of Truth.
Especially in the face of AI generated photos, we're dealing with a future where the youth can easily be misled about what actually happened in the past, or even in the current moment. There is very much an upswing of young people questioning established narratives of the past, often under the guise of "well you weren't there, how do you know for sure?"
Reality is perception, and they are busy managing reality to deny any perception of Nazi behavior.
It's why Musk especially lies so fluidly and easily in the face of hard evidence.
It's all perception management, and as long as they keep talking and keep repeating the same lies, a significant number of people will believe them.
Musk still claims it wasn't a Nazi salute, and a significant number of people believe him. It's kind of like Trump's statement that he could shoot someone in the middle of 5th avenue and not lose any support. It's all attack, never back down, never admit fault.
EDIT: It's also Bannon's "flood the zone with shit" strategy at work, too. We've been in an Attention Economy for a long time now (at least since 2007 when the iPhone put a screen in everyone's pocket), and they know people's attention is limited, so they work to force themselves into people's limited time and attention spans. If your message is the only one they have time to hear, they'll probably be more likely to consider yours true. This, for example, is why Musk forced himself into everyone's Twitter feeds, he's force feeding himself the limited attention of millions.