My best impression is that they are invested in protecting their rosy vision of him. To them, he is a "great dad" because he puts on a good face and plays with DD8. They've lowered the bar so low it's on the floor.
I have offered to work with them on grandparent visitation if there were changes to their circumstances -- they have implied that the supervisory agreement was a trap for them and I'm sure it's an imposition -- but they ultimately haven't made or initiated any changes. If I am 100% honest, I don't think they really want to have her - their language is that she's an incentive for XAH to keep it together, which I HATE. When she is there I get the impression that she and dad are in their basement apartment area, functionally unsupervised.
We made these agreements early on when it looked like XAH might get it together. But it's been like five years and he's been unemployed, drunk, and a basement dweller all that time. And now this, ugh.
So what do you think? Leave it alone, see what unfolds from all this?