Also, Picchi’s design is similar to Kasumi’s (not Sumire's), so I wanted to include this element as a love conflict! The red ribbon makes this similarity clearer, especially since Picchi didn’t wear ribbons until Shido’s palace (she used to wear her hair either down or tied back).

Her parents were incriminated by Shido, for whom they worked in the cognitive psience laboratory. His intent was to steal restricted, secret information and use it as leverage for his future campaign
Picchi’s family was very close to Goro's, so if they disobeyed, Picchi’s life would be at risk.

EXACTLY!!!