Neonchameleon
Legend
Almost all of HPL's work has exited copyright protections due to age. A good chunk of his contemporaries' works have, as well..
Bledso's work is all still under copyright, and if it's used, Bledso is entitled to compensation.
One huge difference is that there are two Bledsaws involved here. As far as we can tell Bledsaw the elder was a decent human being and emphatically not a Nazi - and neither is Jennell Jacquays. The work therefore is untainted; it's simply that the copyright has been inherited by Bledsaw the lesser who is a Nazi and this is about giving money to Nazis.
Meanwhile there isn't the money issue for HPL because his works are out of copyright - but there is the issue not only that he was a spectacular racist even by the standards of his time but his stories are largely about xenophobia and why we should fear the unknown and those who are different. Xenophobia and racism are thus woven into those stories while the Nazi connection to Judge's Guild is entirely (so far as we can tell) the person who got the rights rather than any part of the actual works.