Not sure what they are doing. They should have learned the lesson after Civic X. It shouldn't have reappeared in Civic XI and new City.
City GM6 didn't have this issue globally. Then came the GN2 (7th gen sedan) in international market which was plagued with steering rack issues just like Civic. But when GM6 was launched in Pakistan, it also had steering rack issues.
This looks like Honda either moved to the same vendor or similar design as of Civic.