I think a lot of people are glossing over this.
2021 - 3rd in runs and 2nd in wRC+
2022 - 4th in runs and 1st in wRC+
2023 - 14th in runs and 7th in wRC+
I don't believe that the org developed a fatal philosophical flaw last offseason. I think three mostly unrelated things happened:
1) As you said, they priortized defense instead of offense. 1000 PA to Keiermaier and Merrifield. Another 600 to Varsho.
2) They got unlucky and underperformed their wRC+ when it came to converting hits into runs. This probably isn't sticky.
3) A few players underperformed expectations. I still think this is mostly just a Vlad thing. The 2023 offense simply isn't that good if Vlad isn't elite. If Vlad is elite, fans aren't really batting an eye at Springer declining at 34, or the fat catcher not producing, or Varsho getting less lucky on contact than he did in previous years.