The abridged version likely had absolutely NOTHING to do with 'sensibilities".
First of all, Amazon does not edit or abridge anything.
It was abridged by a company called Hoopladigital, who likely sold the rights to offer the abridged version to Amazon Prime for sale/rental.
IaWL is derived from a short story called The Greatest Gift
IaWL, in it's entirety has dubious copyright ownership due to mistakes with filing.
The Greatest Gift retains it's copyright.
My best guess is the abridged version is offered to avoid having to pay residuals to the copyright holder of The Greatest Gift, while the full IaWL movie does have to pay them.
The really funny thing is that the FBI criticized the movie upon release for it's negative portrayal of the evil banker-too communist at the time.
Now, the right is criticizing the movie for being too woke for REMOVING the reference to him being evil,
Funny too that Potter was never caught or punished for his theft, something contrary to the Hayes code if effect at the time.
Also, BillJ is simply an idiot.