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In case you're wondering what the argument is. You should still read the story though.
That's the biggest part of the reason, but there's also the fact that he's been complaining about how the 'woke left' has destroyed comedy. That's not exactly going to endear him to young adults either.
Also, the whole reason he's complaining about comedy being destroyed is that he hasn't been relevant in over 25 years. So even ignoring everything, he's some boring old dude that hasn't been that relevant the entire life of most of the graduates. They selected someone that the staff might be impressed by, but not someone that is vaguely interesting for the actual graduates.
YouTuber MovieBob absolutely nailed it when he said in his recent review of the new stupid Seinfeld movie that at this point going "anti-woke" is just a marketing move for older washed up comedians. Most of them probably don't even give a shit but it's vastly easier to pander to the crowd so desperate for any validation of their hateful rhetoric than it is to write new insightful jokes that resonate with a culture you're quickly aging out of.
Of course none of this is to defend Seinfeld; if anything being a manipulative conman willing to pander to the worst appetites in America is arguably even worse than genuinely believing the bullshit in the first place.
Seinfeld is a Billionaire. If I ever had 1% of that, I'd never try to force myself to be relevant and happily accept I'm not relevant anymore.
I'd expect that's in fact the natural trajectory of being in pop culture, that your time of relevance is fleeting, and plan accordingly. No hurt feelings that no one is lining up for your material anymore, it happens to almost every single person in that field. You only can make your legacy worse by trying to force things, exit on a high note.