This is a game meant to be fun and sold worldwide.
It's got a few cards that feature Nazi imagery, make reference to racial slurs, and other similar symbology. Some can actually be downright repulsive to some players. So these specific cards get banned from tournaments and aren't being reprinted. You can still do whatever you want with yours if you own one.
That's it.
Any attempt at turning this into a slippery slope or some argument on the morals of art is just a lazy excuse for defending Nazi artwork.
Those hooded figures were standard fare for executioners in comic books, books and films with medieval setting when I was growing up. It takes precedence over a half dozen sideways pop culture references I only got later in my life.
And as a curiosity: that pointed hood is still used in some religious processions in Italy today.