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That rumor has already been confirmed to be fake, because Lycanroc, Silvally, and Zoroark are all confirmed to battle in SM138. If Umbreon participated than the battle will be a 4v4 and the rumor claims that the finals will be 3v3.
I don't think that TR will interrupt the league unless they are adapting the Team Rainbow Rocket post-game story arc, but I think that it's too late for that. The rumor also claimed that Umbreon will battle Pikachu but we have no indication of that happening.