SPD Group 2 handled external development from Japanese developers. Primarily of the mature/JRPG/Puzzle variety. SPD teams back then focused on specific genres and niches they were good at. Group 1 was niche and weird games, Group 2 was RPGs and mature titles, Group 3 was western games, Group 4 was party games and more kid-friendly RPGs.
Lately though, EPD has been bringing more of its external development under Production Group No. 2 (Toyokazu Nonoka's studio). Many of Nintendo's more recent, western games, and Fire Emblem/Xenoblade/Pokemon titles have been produced by Nonoka, and staff that originally worked at Group 1 like Genki Yokota, now work under Group 2. The only exceptions are games who's core design are generated internally at EPD then fleshed out by an external source (WarioWare and Metroid Dread) or games that were sequels to SPD Group 3 titles (Luigi's Mansion, Paper Mario, Metroid Prime).
That makes me think Nintendo is gradually consolidating external game development under Group 2, making it it's own XDev. Because Sony has been doing the same thing lately with PlayStation Studios originally having like 6 external development sources (JAPAN Studio, XDev, Santa Monica Studio, Foster City Studio, San Diego Studio, and London Studio). But now they just decided to bring it all under XDev, allowing the other studios to focus on their own creations.
And again, it makes you wonder what EPD Group 1 had been working on since 2019 if they're no longer in charge of Fire Emblem or Pokemon and such. Did the new Group Manager completely restructure the studio to focus on internal development like the rest of EPD? Is Yamagami still at Nintendo at all?