I think it depends what you mean by acknowledging. Square hasn't managed to depict a single romantic relationship in the entire series properly. (Has any original character ever kissed someone?)
This isn't actually true. While Nomura has never wanted to confirm things firmly for ships with original KH characters other than SoKai, the series has always portrayed the Disney romantic couples as such. Aladdin and Jasmine, Beast and Belle, Aurora and Phillip, Ariel and Eric, Hercules and Megara, Jack and Sally, etc. Of course, I think the only one of those we've actually seen kiss are Ariel and Eric (in the credits scene of KH2). I guess Aladdin and Jasmine do (unshown) in the KH1 credits, too.
Raya is a flop, but mostly because it was dropped right at the beginning of the pandemic.
Encanto came almost two years into the pandemic on the other hand, but I don't think it's considered a flop outright because it has been very successful in streaming, merchandise, and soundtrack / digital song sales.
Strange World is a flop, but it probably has more chance appearing than something like
Treasure Planet or
The Black Cauldron do since
Strange World is 3D and a recent film, whereas those are hand-drawn films which are appearing less and less in KH, and also released so far in the past that there's not much "push" to include them in the series from anyone's POV (Square's or Disney's) as with a more recent film, I suppose. I have a feeling
Strange World could end up being a story that interests Nomura simply because it's about
a world that's a living organism, some new territory for him to explore perhaps--but who knows.
I don't follow PIXAR films as closely, but I don't think
Turning Red is a flop?
Lightyear was, I guess, I don't know about
Soul,
Luca,
Onward, etc.