Over the past two years, there were significant tax legislation changes all across the Europe. It created a lot of hassle, so most businesses are doing their best to make things easier and reduce all the bureaucracy.
We had to start paying the VAT separately in every single country of the EU since 2022. So I opted to setup a company outside of the EU, in order to have the VAT handled by Amazon as the marketplace tax facilitator. I believe that Amazon wished to make things easier for themselves as well by switching their legal entity:
I would advise you to speak with an accountant to advise you the best solution depending on your specific situation and business needs.