The bottom line here is that the writing and creative thought processes around the Titan in S3 are just sloppy and inconsistent.
Sure, it's possible to do a whole lot of mental gymnastics in order to develop some kinda vaguely plausible explanation... but that in itself tells you just how poorly this was developed. If they had bothered to make the effort to think this through then all those mental gymnastics would be unnecessary.
Now, Trek has always had creative inconsistencies, right back to TOS, but the majority of those were minor details like wardrobe errors or the odd word in a script... the sort of details that fans would pick up on... and, yes, sometimes they just plain changed tack and dropped old ideas for newer ones. I fully accept that sometimes there just is no good answer and the inconsistencies are what they are, even with fan retcons to try to explain them.
There have been other, bigger inconsistencies but there was, at least for a time, a distinct effort to maintain as much internal continuity as possible within the wider Trek universe. That Matalas and Co. have chosen to put this glaring disconnect front and center feels somehow emblematic of the broader problems with the writing on Picard. It's annoying because it makes no sense to anyone with half a brain and because with just a little more thought on their part it was wholly avoidable.