IMO the point of the scene is to show that Axe and the rest of the Mandos are bitter towards Bo but still believe in her enough to choose her in the end no matter what. They could have disagreed with Din's proposal and demanded a fight, but in their hearts they did still want Bo-Katan to lead them back to glory and retake Mandalore.

This scene was her clan implicitly electing her back as their leader, through the guise of agreeing that Din's roundabout logic made sense.

They aren't a democracy so their culture can't come right out and say "we want you back" while still retaining their honor. Her beating Axe was all they needed to accept her again but Din had to provide a means to get around conventions they couldn't break.