Nah, that happened a year before, when the External Development Department was established, and the Product Development Department was renamed Internal Development Department, which then got turned into Team Asobi.
XDEV Japan was actually a department inside WWS Japan Studio (a division)! They were then moved onto the new Japanese PS Studios branch established in April 2021 (itself a replacement of WWS Japan Studio).
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Japan Studio had their internal 2nd party publishing team (a.k.a. XDEV Japan, a.k.a. external development team, a.k.a. Japan Studio XDEV team, a.k.a. XDEV Japanese team a.k.a. External Development Department) since the PS1 days, working in all their 2nd party games like Parappa, Arc the Lad, Rapid Reload, Everybody's Golf, Wild Arms, I.Q., Ghost In the Shell, Alundra, Legend of Legaia, Um Jammer Lammy, Vip-Ribbon, Dark Cloud, Mister Mosquito, Dark Chronicle, Genji, Jeanne d'Arc, Folklore, Rogue Galaxy, Patapon, Echocrome, White Knight Chronicles, Demon's Souls, Tokyo Jungle, Soul Sacrifice, Rain, Bloodborne, The Tomorrow Children or Déraciné. They are the only Sony Japanese 2nd party team.
They always have been inside Japan Studio since its creation until branching out with the recent restructuring, independenly if renamed or their position inside the studio.
Japan Studio was in the same SIE Japan HQ building where the new Team Asobi and XDEV Japan offices are. The two teams got new offices because were going to grow and were going to need more space.
That 2nd party team, the XDEV Japan team, after the restructuring they continued doing the same job with Death Stranding Director's Cut, Rise of the Ronin, Death Stranding 2 etc. plus now games from the rest of Asia (Stellar Blade, Convallaria, Lost Soul Aside, etc). After the restructuring they were now their own team, part of the global XDEV network, not reporting anymore to Japan Studio.
In the same way than when the XDEV European team became its own team/office when branched out getting their own office outside where they started (Liverpoool Studio). And same goes with the USA team when branched out of Sony Santa Monica/San Mateo.
Aside from this 2nd party publishing / support management team, Japan Studio also had their internal development team, which had several teams working on different games at the same time. Many devs moved from a team to another as needed. Some of these internal developmen teams sometimes had names, such as Team Siren, Team Ico, Team Gravity, Team Asobi. But weren't really separate teams. Most fluidly moved from a team to anoher as needed. Obviously over time some retired, moved to other companies or got fired. All the remaining internal development devs after the restructuring got merged into Team Asobi, who already was a team of people (as you can double check in the game credits of both Astro games) who worked in the other internal development teams.