Blame Lufthansa for all of this.
The German high court has recently issued a final ruling in a long legal battle between Condor and LH in favor of LH who was seeking to and now is allowed to unilaterally exit the long-running SPA the two airlines had in place (feeder flight agreement at favorable conditions) that dates back to the pre-deregulation times of the early 1990s when Condor was still an LH subsidiary. Without that SPA which was getting passengers onto Condor longhaul flights, and faced with significant price increases and capacity reductions as LH and group subsidiaries basically can charge whatever they want for those feeder flight seats (the LH group now has a near-monopoly on intra-German flights) Condor had no other option than to adapt. Contrary to decades ago, LH has no longer an interest in feeding passengers to an airline at favorable rates that now has evolved into a prime competitor to its core longhaul business.
Good article on the subject: Condor adjusts North America program 2025: cuts, frequency reductions and uncertainties regarding Lufthansa feeder flights – Aviation.Direct


I don't think so. The business class seats have coat hooks that look like they're sturdy enough to handle a suit bag.