[quote=@Gentlemanvaultboy]
FF7R is a sequel so it isn't retconning anything.
[/quote]



It's not even that, though. Shinra does blow up its own reactor but Avalanche doesn't know that and it's one of the changes that at least works in the narrative of the game. But it is absolutely not a sequel. 

[hider=spoilers for real click at your own risk]It's an alternate universe where Dementor's from Harry Potter are metaphysical manifestations of the expectations of the fans who want things in the game to be exactly as they remember them to the point where they alter and change events in the game to be more in line with the original universe that is OG FF7 and the game ends with the party breaking free of the shackles of 'fate' by defeating the ghost monsters and then fighting Sephiroth who also wants to defy destiny because he knows the other reality where he loses and he wants to prevent that. Also, Zack is alive.[/hider]