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You can find a detailed description of the Update and all the changes in the update notes:
https://store.steampowered.com/news/app/1336490/view/3676674235050601004
Perhaps that could be another reward for some events. You gain enough supplies/support to send out another city.
It provides a new trade hub after a number of years, and extra resources for the citadel, maybe?
They'd randomly block you off places you want to go, made failing a settlement even worse than it already was and made people playing on lower difficulties feel even worse getting even fewer rewards comparatively.
The new seal system works a lot better granting extra resources.
But now I have less cities to do trade route, thus leading to less trade route item option.
As soon as you unlock the factions as a trading partner in the skill tree you have them all the time, in every settlement, even when setting out after the cycle reset.
Before this update you needed one or two complete settlements in order to have 4 trading partners, starting with only the capital to trade with.