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They allow it until the kids are 19. Then they are supposed to make a decision about which one they want to keep.

Yes, but my understanding is you can keep saying you're working on making a decision and de facto keep both.

I lived in Japan and know many people in this situation. Most people just never tell the government and keep both. There's no proactive outreach by the government for these cases and it's ok unless you happen to mess up and produce your foreign passport when entering Japan instead of your Japanese passport. It's a "don't ask, don't tell situation".

There was a lawyer, originally from Japan, living in the US who did try to force clarity on this issue and sued the Japanese government. Unfortunately she lost so the status quo remains. https://www.asahi.com/ajw/articles/15077494

They may ask why you don’t have a stamp from the foreign country you were just in though, no? (At least for the ones that still do stamps)

True, there may be complications if you travel to Japan from a 3rd country. It might be something they are aware of. I imagine most trips are directly from the other country of citizenship/residence.

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