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All-Stars is a different case because Kratos actually references it in GoW Ragnarok itself.The fact that both All-Stars and Shovel Knight are ""canon"" honestly just makes it seem to me like the GOW devs want to reference every bit of Kratos' history, Shovel Knight for example just doesn't work with GoW's worldbuilding LMAO, especially if you throw the Battletoads into the mix.
But that is a story for another time.