Install card, play card. Space isn't an issue. They don't want to spend the money. Plenty of switch games have required downloads because they can't fit the whole game on the card. This is just passing the storage cost to the consumer by making you download all of it vs some of it.
Star wars outlaws loading issue is also bs since some switch games, again, require extra data. Just install required data to the console from game card for faster loading. They say cost wasn't a factor but it totally was. Lazy dev work.
There are so many easy solutions to these problems they aren't bothering with because lazy and money.