He did? Wow. And please, that was obviously hyperbole. Quicker than saying why is he banking on a boca juniors player playing at la bombonera over a far better player? This is a thing with Brazil and Argentina. Maybe less so with others because they don't have the same talent pool. Still, managers tend to favour "local" players a lot, even when it doesn't make sense, rationally
I know it was hyperbole but only now you are getting to the real issue which has nothing to do with magic.
Managers do indeed favour local players
when things aren't working. I wouldn't call it some irrational South American thing seeing as Europe doesn't face the challenge of having its best players plying their trade thousands of miles away. Other regions have that with a few token players, their Messis, but only South America has entire XIs and benches in that situation.
It's been an ongoing issue and discussion for ages. When I was a kid you simply didn't call up Europe-based players (clubs didn't have to release them, there were no FIFA international weeks, etc). In 1981 Uruguay was so clearly missing it's biggest star that
fans raised the funds to buy him back for a then record fee of 1.2M. Funny enough, fans from
all clubs chipped in for
one team to get back their superstar. By the time the fundraising was done and the transfer sorted we had already missed out on World Cup qualification, but Peñarol went on to win the Libertadores and beat Aston Villa in Tokyo.
That was one guy. The drain intensified in the 80s, I missed out on watching quality players like Venancio Ramos playing for us just because some no mark French club had more money to offer. Soon enough the rule was left behind and "the expats" started getting called up. After crashing out of Italia 90 in the second round the expats were blamed: they didn't feel the shirt, mercenaries looking after their legs worried about potential injuries, etc.
This led to a renewed ban on expats and probably the worst Copa Américas we ever played with absolute dross turning up for the national team. We also continued to miss out on World Cups, first for not calling them up, then because those having a specific agent got called up... it was only Diego Forlán that eventually broke this up in 2002 given the insanity of a Manchester United player not being considered just because he didn't want to have Paco Casal as his agent (a Raiola type that virtually owns half the clubs in our league as he systematically took advantage of them running into debt to buy their best prospects and leave them there on loan while searching for the big move. With no great players staying or leaving funds behind after leaving, they never turn things around).
It was only in 2007 that Tabárez got all that shit sorted out and implemented both a tactical blueprint for all to follow (U-XX to NT) and profiling criteria for candidates (e.g. selfless, team-oriented, etc), emphasises participation in that process rather than form, and explicitly favours players exposed to CL and European football (different tactics, discipline, pace...). There's a plan, and while stars are important we survived Forlán retiring, Lugano gave way to Godín as the defensive rock, Giménez coming through... We may not be the easiest on the eye, but we actually led the qualifiers early on despite both Cavani and Suárez being suspended. Only teams can manage that, not random assortments of in-form players.
I just ran through Uruguay's ups and downs but I'm sure you can write a similar history for others just changing dates. The many Romario-gates in Brazil were very much about that. He was old and spent but still banging them in locally.
And don't get me started on agents paying managers and/or the FA to use the NT as a shop-window... a big issue in Brazil for years.