After all, such a force gathered together is something even the Jade Emperor cannot truly control. Fearing it might exceed his expectations and cause backlash, the division within Confucianism has the involvement of the Jade Emperor.
Only after this Confucian split can the Jade Emperor subdue the power within it for his own use. Thus, even if some people are dissatisfied and secretly contend with him, he also appears to let it be, even as a display of his magnanimity, to win people's hearts.
But Lin Hongfu's plan ultimately touched the interests of too many, and without a doubt, the Jade Emperor was the main target of his plan. By that time, when his interests truly suffered, there would be no possibility of mediation between the two, and the Jade Emperor would absolutely have no thoughts of enduring, nor would he sit by idly.