From an outsider's perspective it is nonsensical and self-defeating, the reason I found it most believable is because I can imagine what mental gymnastics are at play:

Believing so hard that you're not a Nazi because of this or that, your peers believe the same, so using Nazi symbols together obviously isn't a symbol of their true beliefs*, it's just to make the Russians go .

Plus, who cares what the Russians think, they lie about you constantly anyways, calling everything an Azov base .

*Platner did this when he downplayed his Totenkopf tattoo by talking about how un-Nazi his beliefs are.

The West voted against Russia's UN resolutions condemning Nazism and racism because they didn't want their support used by "Russian agents" to attack support for Ukraine, so they end up voting against anti-Nazi resolutions which if anything was a bigger propaganda win for Russia than going along.

In both cases it's preaching to the crowd + smug self-righteousness.