Way to simplify things, dude. You should be doing math. ZING
The problem is not that the game is set in America. The problem is that the fact it's set in America is an issue. It's supposed to be ringing the tones of American life. Contrast this with GTA games, whcih are also very much about America but with an outsider perspective on it (in fact, the first GTA games were made when Rockstar, then DMA design, was British). This wouldn't have been a problem if the game was simply about Western modern society being invaded by a restrictive outside power, and this Western modern society was exemplified by the US. Instead, the game makes a point of how American it is, and surely alienates foreign audiences.
But the real problem is that the game is about the US being in a war in which a massive military from a foreign power invades a modern civilized country and destroys their culture, forcing their own upon the civilians. The US is the only country in the world who would read that description and think the US is the country being invaded. The entire world knows the US as an aggressor, and while I'm sure the intent of the devs was to turn the tables on this assumption by portraying them as the victim, it comes across as sincere as a racist man trying to make up for their racism by putting on blackface. Plus, the whole idea of the game is that 'the US fights back' and there is no way the final message won't be 'US still wins, bitches'.
Setting the game in America isn't the problem, it's the beginning of the start of the first draft of the problem.