What happens when the DTC orders brokers to do a regular stock split when the company issued dividends?

So the shareholders voted to do a stock split and then the company decides to do it via a dividend. Looking at Tesla they issued a split via a dividend. So they gave the shares to the DTC and the DTC ordered the brokerages to split the stock and then they receive the dividends for those splits. But in another case, a company issues a stock split via dividend and gives those shares to the DTC. But this time the DTC keeps those shares and orders the brokers to do a regular split. Would this not dilute the outstanding shares? Brokers in South Korea and Germany informed investors that there is an irregularity because they do see that the company issued dividends but the DTC told them to do a regular split.