Don't we all know the actual answer to this? There's no reason except because Kpop stans think their faves deserves while ignoring the actual criteria especially when those groups don't have the actual numbers. A lot of people that said Fancy deserved SOTY are also just token stanning, they'd be glad to support another group as long as BTS can be taken down.
Meanwhile 2020 had several competitions indeed, but those definitely didn't include some so called "SOTY" on kpop twt like Kick It and God's Menu (as far as I saw and remember) but of course the stans would keep saying that these songs deserved SOTY over Dynamite because these groups are more talented or these songs are better than BTS or Dynamite. You know the drill, these people actually believe that their faves should get everything and they just argue on twitter without actually fulfilling the criteria to win those awards.