I would assume that the reason for them deciding to go with AVX is this:
To further elaborate, imagine that there are only seven CPU-types in existence: A, B, C, D, E, F and G, with A being the most modern and G being the oldest. CPU A has a market share of 1%, B 5%, C 25%, D 38%, E 25%, F 5% and G 1%. CPUs F and G are too old to be AVX-capable while CPUs from A to E are AVX-capable.
Now imagine that Paradox have performance tested Victoria 3 both with and without AVX:
- With AVX CPUs A and B have great performance, C and D have decent performance and E has acceptable performance. CPUs F and G can't run the game at all (because they lack AVX).
- Total market share able to run the game at all is 94%
- Total market share able to run the game at least decently is 69%
- Total market share able to run the game really well is 6%
- Without AVX CPU A has great performance, B and C have decent performance and D and F have acceptable performance. CPUs E and G can technically run the game, but their performance is deemed unacceptable.
- Total market share able to run the game at all is 74%
- Total market share able to run the game at least decently is 31%
- Total market share able to run the game really well is 1%
Your CPU is F in this example.
Obviously there's more than seven CPUs in real life, but the main point is, that requiring AVX probably allows more low-end (but AVX-capable) CPUs to run Victoria 3 than it prevents old (and thus non-AVX-capable) high-end CPUs.