The reason a nation state may want a "nuke in space" is not about overkill or even satellites per se, but I don't consider it a dramatically new development.

High Altitude EMP attacks. A single nuke can take out a 1200+ mile radius of most electronic devices and infrastructure.

The advantage of a space-deployed one is you can't detect the launch of an ICBM.

That's it, detectability and about 10-20 minutes of lead time, ICBM also results in more prompt counter-action.

Lots of military equipment and certain satellites are EMP hardened. Even EMP hardened equipment can be overwhelmed if sufficiently strong - hardening is mostly about Db reduction, take a pulse inordinately stronger than the hardening is designed for and it can still harm the equipment.

So in any event, it's overhyped, but also not a nothingburger. It's not about overkill in space, or even attacking "just satellites", it's about a first strike to wipe out our electrical infrastructure with no advanced detection of any kind.