Neo-Geo censorship was always nonsensical. Mai's iron bra. White/green blood in KOF, Metal Slug, and Sam Sho.
Solutions looking for a problem.
The American parental/governmental moral panic was long in the past by the time they were smashing their releases with censorship in the mid 90s onward. By the time home ports of Mortal Kombat II came out in 1994, even Nintendo allowed the full on gore in the game. Nobody in the US gave a shit about a little blood or bouncing tits in 1996, and they especially didn't for games on, by then, outdated obscure arcade hardware and even more niche home consoles.
The irony is if they had left all the censorship out, it might have actually given the games more attention.
It all circles back to SNK's absolutely horrendous and outdated marketing, and the very "Japanese" mindset that came with it. Either SNK USA was powerless to do anything about it, or they just didn't bother to try.
SSVS was just another instance of that very "Japanese" mindset that is extraordinarily reactionary to a bad event occurring, when the reality is that what they did made absolutely no difference on the violent event that occurred.