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You think that Mexico would've ended up super expansionist AND stayed democratic?
Again I'm not trying to waste my time debating what's realistic, I'm merely asking what is the RNG of Britain accepting the sale of Belize and the Allies accepting the withdrawal of their Carribean territories. I already know conquering Central America as democratic Mexico in the Allies is possible, because I've done it before.
If you already know it's possible, why'd you ask the question?
Additionally, if you as Democratic (or any other ideology for that matter) Mexico declare war on a nation like Panama WHILE YOU ARE IN THE ALLIES, it makes PERFECT sense that your victim Panama would go running into the arms of the alliance DIRECTLY OPPOSED TO the Allies (the Axis) and the Axis would take them under their wing. I don't see how that's the game being "stupid", it's Panama and the Axis taking the logical response to an Allied Mexico invasion of Panama.
PLENTY of nations were members of alliances IRL that theoretically did not conform to their values or government types. Fascist Spain was in NATO. Several absolute monarchies were in the Western Allies. Democratic Finland was basically in the Axis. Monarchist/"nonaligned" Thailand was in the Greater East Asian Co-Prosperity Sphere. Communist China was in the United Front with the Nationalists. Communist Yugoslavia joined the Non-Aligned Movement instead of the Comintern. It's about what makes sense for your foreign policy overall, not just joining up on "Team Fascism". "Team Communism", or "Team Democracy".
Bulgaria is another example. If you do the IMRO focus that removes Greece's cores on Thrace and Macedonia, leave the Axis, declare war on Germany and join the Allies (despite demanding occupation of Yugoslavia from Italy and Germany, wiping one of the Allied nations off the map) you can demand occupation of Thrace and Macedonia from Greece as they are now a faction member occupying non-core states. And Greece will immediately accept. Like I said, this game is a stupid meme. Objectively.