

It’s spelled that way because Fruit Loops was too generic to trademark. There is a story about froot loops changing its name due to a lawsuit but that was proven apocryphal. There are other brands with this being a real issue that happened.
In 2020 there was an Australian lawsuit with hopes to force Kellogg to change the name because Froot Loops had over the years become a slur for disabled people. It’s failed.

Google the headline. USAtoday, Texas Tribune, and Insideclimatenews are a couple on the first page. It seems wild to just shrug off something as conspiracy without even checking unless ones own bias is the culprit.