Obviously I don't know the details of your company situation, but I've experienced myself over the years, that sometimes it can be less overall cost and trouble to give this kind of lip service, rather than fighting an overwhelming fashionable trend until that trend runs its natural course to extinction.
> Team motivation is in a weird space: everyone is relaxed because there is no pressure to succeed
If I was leading that team, I would try to find (or insert) nuggets of goodness (smaller/non-obvious objectives and tasks) in that project which allow the team members to get some personal longer term benefit out of it.
And ideally find (or insert) nuggets of goodness (smaller/non-obvious objectives and tasks) in that project, which have a good chance of becoming useful to the company later - beyond the scope of the official project.
And hopefully the team would become excited about doing something meaningful beyond the official project objective.
p.s. I'm speaking from experience in this kind of a situation.