It’s whitewashing because it’s implying that genocide, leftist suppression, etc are the exclusive characteristics of a fascistic system instead of business as usual under capitalism. This removes the bad aspects of capitalism (“if this is happening it’s because the US has turned fash, it’s not capitalism’s fault”).
Nope. The Nordic countries are still controlled by capitalists, they (akd most of western Europe as well) just have given the workers some welfare policies in order to appease them and stop any revolutionary ideas. It’s no coincidence that these policies were in place while the Eastern bloc was around and they began to dismantle the welfare state as soon as the USSR fell and they felt they could get away with it.
(Disclaimer: I’m not saying that the welfare state is evil, and that we’d be better with the shitty US way of doing things)