Why does the 126 pound division lack talent, or even fighters?

I don't think it's much to do with that tbh. In their other fights it's clear enough they're not on the level of not only DJ, but the other best fighters in the UFC.
Other then Cariaso, DJ's defences came against opponents with a combined 40-2 record in the UFC when you don't include them fighting eachother.

1 of those losses was Lineker over Dodson which many think was the wrong decision. And Bagutinov beat Lineker handidly anyway.
 
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