After the demise of Samsung and Qualcomm's (first) custom CPU design teams (others like nVidia's made interesting but not performant nor high volume core designs), Android SoCs were almost completely reliant on ARM's SIP designs which defined the CPU block of most vendors roadmaps. Qualcomm acquired Nuvia in '21, which given the lead times of ~3 years for ARM CPU designs would be right around when the X-925 was in the nascent stages of design, allowing it to pivot its design in reaction to what was coming. Had this not occurred, it's entirely plausible and consistent that ARM would have gone with a good-enough, less complex, less expensive re-design for '24 that would have been enough of a bump instead of an aggressive ~40% improvement in performance (we'll see how the X-925 does in efficiency and area...).
OEMs were beholden to ARM's offerings and didn't have much of a choice: a good enough design would have been enough to sell next year's Android phones, but the cadence prior to X-925 would certainly have kept Android SoCs out of striking distance from Apple's CPU designs. Furthermore, given Apple's deep relationship with ARM (founding partner, speed to market with first ARMv8 CPU where ARM's new ISA was likely co-designed off of Apple's first implementations that released just 1 year after the ISA announcement) and animosity towards Qualcomm, I think it's a plausible theory that is not consistent with just the intent to provide a licensable CPU ISA to a broad number of customers to maximize ARM's revenues.
You could argue that ARM just wanted the industry to keep using its SIPs, but if ARM wanted to maximize revenues in the long run (rather than hobble a particular launch) they should have reacted in a way that was closer to embracing and supporting Q's efforts to bring the product to market SOONER: a superior custom ARM CPU that doesn't just go into walled-garden, consumer electronics would stave off the risk of a user facing RISC-V eco-system and really clear the beachhead for competition with AMD and Intel with earlier and broader adoption of consumer OS's and applications on ARM to better prime the pump for its own offerings down the road. Instead of a quieter behind the scenes negotiations with Qualcomm and allowing for some time for compliance and arbitration in a way that was more win-win, they filed a highly publicized lawsuit of questionable merit.
You could also argue that they just wanted more licensing revenues from the Nuvia design in the consumer space, but it was entirely foreseeable from ARM's perspective that Qualcomm would react to the lawsuit by complying and redesigning relevant portions Oryon with no issues for any subsequent, clean-sheet designs which would have accrued revenues at the ARM Architectural license rate negotiated with Q. All that ARM did with its frankly desperate looking lawsuit was hobble the initial release of the X-Elite initially rumored for '23, allowing designs like the M4 (notably there was no M3 refresh of iPad Pro) and their own X-925 which is now needed in the Android space for ARM to be competitive to come to market just in time. This also notably gave Intel valuable time to shore up the ARM challenge to x86 with Lunar Lake; talk about ARM shooting itself in the foot...